D.C. Key Person Insurance
How to find a trusted adviser locally
Written by
Candace Jenkins is a licensed insurance advisor with over a decade of experience. She is also a writer and loves to write on all things insurance. Candace writes for TrustedChoice.com on a continuous basis and is here with the facts about all your insurance inquiries.
Reviewed by
Jeff Green has held a variety of sales and management roles at life insurance companies, Wall street firms, and distribution organizations over his 40-year career. He was previously Finra 7,24,66 registered and held life insurance licenses in multiple states. He is a graduate of Stony Brook University.
D.C. has approximately 24,7461 people employed by small businesses currently. When you run a company, you'll have employees that are crucial to your existence. Key person insurance can cover your exposure in the event one of these staff members is gone.
An independent insurance agent can quote your coverage through various carriers, so you get the best rates. They do the shopping at no additional cost to your business. Get connected with a local expert for tailored protection.
What Is Key Person Insurance?
When your D.C. business has a team, there are several policy options that you'll want to obtain. Key person insurance can help you protect your operation from a big hole in your day-to-day tasks if a crucial employee passes. Check out what D.C. coverage has to offer.
- Key person insurance: This is a life insurance policy that can be bought for a key executive's life. Your business would pay for the policy's premiums and be listed as the beneficiary. This policy is also known as key man insurance or a business life insurance policy.
What Does Key Person Insurance Cover?
Your D.C. commercial insurance policies will all cover different things. Key person insurance will vary from carrier to carrier, but most have basic coverages that apply. Take a look at what a key person insurance policy can cover.
- Insurance to replace profits associated with a key person
- Offsetting lost income from sales due to a key person
- Protection for shareholders and other interests
- Cover losses resulting from a business project involving a key person
Save on Business Insurance
Our independent agents shop around to find you the best coverage.
What Is the Purpose of Key Person Insurance?
Do you wonder how your business will operate without an essential employee or executive? Key person insurance is like other life policies in where it pays out a death benefit to the beneficiary.
This will allow your company to pay for things until you find a proper replacement. It can help avoid bankruptcy as well. Check out some things your D.C. key person policy can cover.
- It will pay debts
- Pay severance to employees
- Close the business down if necessary
What Does Key Person Insurance Not Cover?
Every commercial insurance policy you own will have exclusions that apply. From general liability to professional liability, they all cover different things. Your D.C. key person policy may exclude the following.
- Disability insurance for a key person
- Bodily injury for a key person
- Lost wages for a key person
- Long-term care of a key person
Key Person Insurance Cost
Similar to your business owners policy and more, your commercial insurance costs will vary. Carriers use your specific data when calculating your premiums. Key person insurance will be based on the employee it's insuring. Take a look at some factors companies use to rate your policy.
- The key person's health history
- The key person's current health status
- The limits of protection you choose
- If the key person has any current life policies
- How long the key person has worked for your company
- What the key person's role is at your company
How to Connect with a D.C. Independent Agent
D.C. commercial coverage can be tricky if you're not a licensed adviser. There are many ways to protect your business that may be missed if you go at it alone. Key person insurance is overlooked quite a bit but necessary to be sufficiently insured.
An independent insurance agent will be able to help find a policy that won't break the bank. They review your coverages at no additional cost to you. Connect with a local expert on TrustedChoice.com to get started in minutes.