You could face heavy financial losses after the death of a valued member of staff in your business in Florida. Life insurance policies they may have had can offer financial security for their family, but that won’t help you and your business. You may need to consider key person coverage for staff members or business partners whose activities and skills are crucial to your ongoing productivity.

Key person coverage is a type of life insurance. However, unlike a regular life insurance policy, which is taken out by an individual and is usually paid out to their family in the event of their death, key person coverage is taken out by a business, which is then the beneficiary.

You need to discuss this type of coverage with any employees for whom it may be relevant as you cannot insure someone’s life without their permission. It could be a timely conversation for them as well, if they haven’t considered life insurance for themselves. 

Insurance payouts can’t replace a person. The payout from your staff member’s Florida life insurance policy will help enable their family to meet their financial commitments and work towards emotional recovery. A payout from a key person policy may help your business survive the disruption to productivity you could experience if you lose a key staff member. 
 
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