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What is special event insurance?
How does event insurance work?
Every company has its own key persons. These are the people crucial to the activities of the company, and if they are absent for an extended period, the company’s operation will become stagnant. Key persons may have insurance of their own in case something bad happens to them, but who will pay for you when they are not at the company because of a trauma, thus halting the entire production operation? Key man insurance will get you covered. Designed to protect the company from the losses incurred when a key person cannot be present at the office, this insurance will be your best bet to keep the production going even after unfortunate events.
Key Man Insurance, what is it?
Key man insurance is a kind of insurance policy that helps a company deals with the loss of a key person, be it a permanent loss by death or a temporary one. A key-person is normally the owner of the business if it is a small one, but it is not necessarily always the case. For some companies, the key person will be determined by a board, and that person will be determined by the following criteria:
- Will the production process come to a halt, or will the business end, if the said person is dead?
- Will the death of the said person affect the company’s financial situation in the short term?
When the key person was established, this insurance will cover their death or long-term incapacity through traumas.
Why you need Key Man Insurance?
Key Man Insurance is very important if your company relies heavily on one person to make it work. If that person is, unfortunately, incapacitated, it would be extremely difficult to demand insurance claims unless you are covered under Key Man Insurance. The reimbursement that comes with this insurance will also be of great help. You could use that money to pay for the expenses until you could find a replacement, or to divide it among investors. If the key person is of extreme importance to the company, then Key Man Insurance can mean the difference between going forward and bankruptcy for a company.
Key Man Insurance is also helpful if you are looking to boost your key person’s morale. Enrolling them into this insurance program will make them feel much more important, thus giving them the morale boost they need to keep the company running.
What will not be covered by Key Man Insurance?
Like all insurance policies, Key Man Insurance will not provide coverage and compensation for the following cases:
- Fraud
- Suicide within the contestability period
- Intentional dishonesty
Life is full of uncertainties, and sometimes, losing your key persons might just be a price too much to pay for. If your business heavily relies on a key person, getting key man insurance will certainly mean the difference between keeping your business and going bankrupt. If you are looking for the best Key Man Insurance service, look no further! With our years of experience in the field, we will give you the best service out there with the most affordable price plans.