Do You Need to Cover Your Key Person?

If you’re a California business owner, you must buy commercial insurance. Our team at Murvay Insurance has the expertise to explain the types of commercial insurance you need. If your company is near Newport Beach, CA, we look forward to reviewing your insurance options. We’ve been working with California companies like yours since 2010. 

Do You Need to Cover Your Key Person?

In addition to liability and property insurance, your company may need additional types of insurance. According to Investopedia, small businesses (or businesses whose success is closely tied to one individual) often buy Key Person Insurance. The same website explains that Key Person Insurance is intended to provide payment to the business if its owner or other designated key employee passes away or leaves the company. This is done to lessen the financial impact on the company when that individual is no longer there.

According to Investopedia, the company will purchase Key Person insurance, designate their key person, pay the premiums, and receive the financial benefit upon presentation of proof that the Key Person is gone. The same website reports companies can use funds from the insurance payout to pay business debts and to recruit and train a new company executive. The recommended level of coverage is typically eight to ten times the key person’s annual salary. 

Call Us Today for Your Appointment 

Every business is unique, so every commercial insurance portfolio will reflect the unique needs of your company. Our team at Murvay Insurance will take the time to explore your company’s needs and help you discover the right policies for your portfolio. Companies in the Newport Beach, CA area have discovered they can rely on us for great client support. Contact us today and make an appointment, so you can get the coverage you need.