Are your key employees protected?

Think about the key employees at your firm; maybe they are valuable because of their expertise, power, innovation or information. Now think of what would happen if you were to unexpectedly lose them temporarily or permanently; what type of impact would that have on your business?

Studies have shown that when a business needs to replace a salaried employee, it costs an average of 6 to 9 months of their salary to find and train their replacement. For a C-suite position (Key Person) it costs an average of 213% of an employee’s salary to find a replacement(s). These expenses could include: Recruiting, onboarding and training costs, reduced productivity & engagement, and customer service errors.

Key Person Disability Insurance provides you with a financial cushion to help handle the loss of a key employee due to a disability. Paid for and owned by the business, the policy provides compensation if a key employee were to become disabled due to an illness or injury. These benefits help businesses move forward, continuing to operate without that essential employee. At your own discretion, the funds can be used to:

• Cover temporary staffing costs
• Offset the cost of finding a replacement, recruiting costs or loss of revenue during training
• Show financial stability/credit worthiness to stakeholders
• Provide supplemental payments for existing staff for the additional workload
• Reimburse losses due to reduced productivity