Roughly 1,500,000 people work for small businesses in Massachusetts. When you run a company, you'll have employees that are crucial to your operation. Key person insurance can help protect your business in the event of a loss.
An independent insurance agent has access to several carriers so that you always get the best deal. They do the shopping at no additional cost, saving you time and money. Connect with a local expert for custom protection.
What Is Key Person Insurance?
Key person insurance is essential if you have a business with employees. Chances are one or more of those team members is vital to your day-to-day operation. Check out what Massachusetts key person coverage has to offer.
- Key person insurance: This is a life insurance policy that can be bought for a key executive's life. Your business would pay for the policy's premiums and be listed as the beneficiary. This policy is also known as key man insurance or a business life insurance policy.
What Does Key Person Insurance Cover in MA?
Like other life policies, key person insurance will award the beneficiary a death benefit. If a key person unexpectedly passes, your company would have some funding to get through the loss. Take a look at what a Massachusetts key person insurance policy can cover.
- Insurance to replace profits associated with a key person
- Offsetting lost income from sales due to a key person
- Protection for shareholders and other interests
- Covering losses resulting from a business project involving a key person
What Is the Purpose of Key Person Insurance?
What would you do if a critical employee could no longer perform their duties? Key person insurance would allow your company to pay for things until you decided on how to proceed. Another area it can help with is avoiding bankruptcy. Check out some things your Massachusetts key person policy can cover.
- It will pay debts
- Pay severance to employees
- Close the business down if necessary
What Does Key Person Insurance Not Cover in MA?
Your business will need several policies to be adequately protected. General liability is not the only coverage you'll want to have, especially if you employ staff. All policies will have exclusions, including key person insurance. Your Massachusetts key person policy may exclude the following.
- Disability insurance for a key person
- Bodily injury for a key person
- Lost wages for a key person
- Long-term care of a key person
Key Person Insurance Cost in Massachusetts
The cost of any Massachusetts commercial insurance policy will vary. From workers' compensation to professional liability, your premiums are individualized and unique. Key person insurance is no different and based on the employee that it covers. Take a look at some factors companies use to rate your policy.
- The key person's health history
- The key person's current health status
- The limits of protection you choose
- If the key person has any current life policies
- How long the key person has worked for your company
- What the key person's role is at your company
How to Connect with a Massachusetts Independent Agent
Your Massachusetts commercial coverage is essential to running a smooth operation. With all the options out on the market, it can be tricky to know everything you need. Key person insurance is often overlooked, but it shouldn't be.
Fortunately, an independent insurance agent will have access to multiple carriers so that you can compare coverage. They find a policy for an affordable price, saving you time. Connect with a local adviser on TrustedChoice.com to find sufficient protection today.
TrustedChoice.com Article | Reviewed by Jeffrey Green
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