Every company has at least one (or more) key individual that is directly responsible for bringing in revenue. It could be the CEO, a partner, a top sales executive, a technology champion, etc. Thus, the loss of said key employee (death, disability, or resignation) could mean financial ruin for that company. If you are a business owner or venture capitalist, it is important to protect your investments against this type of risk.

Naturally, every business situation is unique. Therefore, you or your risk manager should begin crunching some numbers to see what the potential impact would be should your organization suffer such a loss. First, determine who the “key players” are in your organization. Second, determine what the collective financial loss to the company would be across all of the lives you have determined are key to your company’s success. The sum you come up with is your company’s potential total loss figure. As you can see, these numbers can be quite substantial once realized.

Talk to your Long Island New York insurance broker about solutions that are available to your organization. Key Person Insurance or Buy/Sell Insurance could be the solution for such exposures, especially if the company does not have the liquidity to sustain this type of a loss.