Disability Benefits in your Business Insurance Posted at 11/23/2011 02:44:00 PM 0 comments (+) In many businesses, particularly small businesses, there can be one or two people who are considered ‘key’ persons. They may be the person who maintains all the sales contacts for a company or someone who has particular skills that are critical within a business. The loss to a business if that person dies can be enormous. Additionally, many Washington businesses can attract more employees if they have some of the best disability benefits Washington state can offer.

Key person cover is a type of life insurance that a business can buy to help protect the business against the financial losses due to the loss of an individual. It is additional to the regular components of a business insurance policy, and is only appropriate if you have someone whose loss would mean your company would be in serious financial difficulties for a period of time.

Your company owns the policy, pays the premium and is the beneficiary if the policy is claimed. The amounts you can insure for and the premiums you pay are determined by a few different factors – these can include the type of business, the role of the person, their age and state of health. As the business owner, you need to have the agreement of your key staff member to take out this insurance.

Many small businesses don’t think about this risk, but in reality, losing someone due to a car accident or a terminal illness is probably just as likely as a fire destroying your business premises. Is it a risk you should have covered by your business insurance policy?