South Dakota small businesses employ roughly 210,534 people. If you own a company here, there is vital protection needed for your staff. Key person insurance will cover your risk as the employer when something happens to one of these employees.
An independent insurance agent will have access to a network of carriers. Since they can compare coverage and premiums, you'll get the best deal in town. Connect with a local expert for custom quotes in minutes.
What Is Key Person Insurance?
If your small business has an employee or executive that you can't operate without, key person insurance is right for you. Check out what South Dakota 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 SD?
Not all commercial insurance coverage is created the same. Key person insurance is a policy that your company can use to protect one of your largest exposures, death. Take a look at what a 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
- Cover losses resulting from a business project involving a key person
What Is the Purpose of Key Person Insurance?
Key person insurance is the best way to be proactive when a vital employee unexpectedly passes. Have you thought about how your business might handle a staff member leaving?
This policy allows your business to function while you're figuring things out. It's similar to other life policies where a death benefit is paid out to the beneficiary, giving your business some time. Check out some things that your South Dakota key person policy can cover.
- It will pay debts
- Pay severance to employees
- Close the business down if necessary
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What Does Key Person Insurance Not Cover in South Dakota?
From your commercial auto to your professional liability policy, exclusions always apply. Key person insurance is no different and will have its own set of what it can and can't cover. Your South Dakota 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
South Dakota Key Person Insurance Cost
Like your other commercial insurance policies, such as workers' compensation or general liability, costs vary. There is no one-size-fits-all when it comes to key person insurance, which makes your premiums unique. Take a look at some factors that 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 South Dakota Independent Agent
Your South Dakota commercial insurance policies are essential to running a business that stays open. With so many coverages on the market, it can be hard to choose your operation's best options. Key person insurance is a crucial policy to obtain when you have a team.
Fortunately, an independent insurance agent will be able to access several markets at once. This saves you time and premium dollars, making it a no-brainer. Connect with a local expert on TrustedChoice.com and get started today.
TrustedChoice.com Article | Reviewed by Jeffrey Green
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