Why is Key Person Insurance so important for a business?

Key Person Insurance is vital as it safeguards a business against the financial impact of losing a key individual due to death or total disability. It provides essential working capital to maintain operations, and covers costs associated with recruiting and training a replacement. In scenarios where the key person is the primary contributor, this insurance can be a financial lifeline, compensating the business or its owners for lost income if the business struggles to continue operating or faces closure.