Every business employs people whose contributions are of vital importance.
In a small business, these key employees have a more direct effect on the bottom line, because you don't have multiple employees with the same skill sets and levels of talent. If your key employee's departure is planned, as in the case of retirement or voluntary termination, you can prepare for the loss and take steps to minimize its impact. However, if the employee becomes disabled or dies, the loss is unpredictable and leaves your business exposed to financial risks. Key-person insurance, either life or disability income, can help protect your business against these losses. Should your business lose a key employee through death, the consequences to your business are manifold.