When you consider Florida business insurance, you may think of the usual forms of coverage including liability for injuries, death or damage caused by the business operations, property insurance and worker’s compensation. Fortunately, there are a range of other types of coverage which may be employed, including insurance against natural disasters and business interruption insurance to help keep you going if you need to close for any length of time due to an insured disaster.
Yet another form of insurance is known as ‘key person’ coverage. Designed to compensate the company for the loss of a key employee, it can be vital particularly for smaller businesses that may rely on one or two main employees to provide the backbone of the firm.
This type of coverage offers financial compensation in the event of the death of a key employee who may be vital to the financial well-being of the company. Acting much like personal life insurance, this coverage is taken out by the firm against the death of the employee. Unlike personal life insurance though, the death benefit would be paid to the company.
The insurance can cover the expenses that need to be paid in replacing the key employee such as training another person to do the job and changing systems if this is necessary. It can also be set up in conjunction with another agreement to facilitate the buy out of the deceased person’s business share. For more information about this, or should you have any queries on Florida business insurance, please don’t hesitate to contact one of our agents and arrange a consultation.