Keep your business going when the unexpected happens.

TELL US WHERE YOU ARE:

OR CALL: (626) 799-9532

Protecting Your Key Staff

Just as important as protecting your business against the risk of fire, theft, natural disaster, legal liability, and automobile accidents, is safeguarding it in the event of the death or disability of a business owner, partner or key employee. You want to ensure that you take the steps to protect your business from the financial consequences of events that could disrupt operations, reduce profits, or even cause the business to go bankrupt. 

Arroyo can provide your organization with Key Person Life insurance. Key Person Life insurance can help a business continue its success by reducing the uncertainties under which it operates in the event an owner, partner or key executive passes away. 

Inside Key Person Life Insurance

Your company purchases a Life insurance policy on your key employee(s), pays the premiums and is the beneficiary of the policy. If a key employee unexpectedly dies, the company receives the insurance benefit. The company can use the insurance proceeds for expenses until it can find a replacement person, or, if necessary, pay off debts, distribute money to investors, pay severance to employees and close the business down in an orderly manner.

How do you determine who needs this insurance? Look at your business and think about who is irreplaceable in the short term. In many smaller businesses, it’s the owner who holds the company together—you may keep the books, manage the employees, handle the key customers and so on. If you’re gone, the business may stop.

How Much Key Person Insurance Do You Need?

This will depend on your business, but in general, think of how much money your company would need to survive until it could replace the key person, come up to speed and get the business back on its feet. Buy a policy that fits into your budget and will address your short-term cash needs in case of tragedy.