Business Insurance

Insuring the Life of a Key Employee

office family
The loss of a key employee can be a major blow to any business if that person is the primary contact for customers and suppliers, or if he or she fills important management roles of the business. Loss of the key person may also decrease efficiencies in running the business and result in a loss of capital.

Losses caused by the death of a key employee are insurable through coverage called key employee life.  Here are a few things you should know about this coverage:

  • Key employee life pays a death benefit to the company if the key employee dies.
  • The policies are normally owned by the company; thus the company pays the premiums and is the beneficiary.
  • Key employee life policies will compensate the business against covered losses that result from that person’s death or disability.
  • The amount and cost of insurance needed for a particular business depends on the situation as well as the age, health, and role of the key employee.

If you are interested in this coverage for your company, please contact us for a consultation.

Employee Benefits Update: Affordable Care Act
  • Firms with less than 50 employees are exempt from employer responsibility requirements.
  • In 2014, large employers (50 or more employees) will be required to pay a shared responsibility fee only if they don’t provide affordable coverage. This will affect less than 0.2% of all firms.
  • A small business health care tax credit is now in effect that will provide a 35% tax credit on health premiums, with the credit increasing to 50% in 2014.


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