The Loss of a Key Person

What consequence can your business face from the loss of a key employee?

As a business owner you try to protect your business against lost of physical assets, but what about lost of a key employee? Studies show the probability of losing a key employee is more likely than a loss due to fire or most other perils. It increases to 17 times at age 50, and to 23 times at age 55. Furthermore, about one out of three individuals dies during work life with consequential loss to his/her business.

In addition most other loss due to perils are temporary; locations can be rebuilt and office supplies can be repurchased. In contrast a new hire may need several months or sometimes years to be as productive as his/her predecessor. The deceased employee may also be impossible to replace.

How to determine a Key Employee?

Every corporation has at least one key executive or an employee who makes a substantial contribution to the operation, profitability and success of the business. Any individual that has critical intellectual information, sales relationships, bank relationships, product knowledge, and/or industry contacts that may adversely affect profits in the event of their absence, may be considered key.

Insuring a Key Employee

Although life insurance cannot ever fully replace the value of a key employee, it can indemnify the business for the financial setbacks that can occur. Life insurance can provide the business with needed funds to keep the business running, to assure creditors that their loans will be repaid, to assure customers that business will continue operations, to cover the special expenses of finding, hiring, and training a replacement.

Visit http://www.vintageinsservices.com/Loss_of_Key_Employee.html  for more information on how Key Person Insurance may work for your company.

Does Workers Compensation Insurance apply to your business?

Let's say you’re the owner of a flower shop with four employees located in the great city of Brooklyn. You have done everything you needed to do to protect your business from liability to customers and patron of your storefront. So far, it seems like all bases are covered. However, there is one thing missing that can put your business at great risk.

While you have protected your business from patrons of your establishment, what about your employee? Did you know that many companies regardless of size are greatly impacted by suit due to injuries that happens on the job? Well we have great news Workers Compensation Insurance can protect your employees for on the job injuries.

What Does Workers Compensation Insurance do?

Workers compensation insurance covers the cost of medical care and rehabilitation for workers injured on the job. It also compensates them for lost wages and provides death benefits for their dependents if they are killed in work-related accidents, including terrorist attacks. The workers compensation system is the “exclusive remedy” for on-the-job injuries suffered by employees.

What about off the job injuries?

States like New York and New Jersey requires employers to purchase an additional coverage, which allows employees to be covered for off the job injuries. This coverage can be paid for a minimal premium solely by the employer or with contribution from the employees, and covers up to 60% of wages (max benefit applies). This plan typically covers the 6 months of wages paid prior to any other disability benefit kicking in.
Get more information on State Disability Benefit Insurance.

Read more about the penalties and liabilities for not have State Disability Benefits. Primary