Most companies have employees that they couldn’t live without—technical experts, salespeople with irreplaceable relationships, or possibly even the CEO or owner. If your business has indispensable executives or staff members, you may want to consider key person insurance.
Key person coverage is designed to protect businesses from economic damage that might result from the sudden loss of crucial employees. It has become a necessity at many companies now that venture capital firms, banks and other lenders have begun to require key person insurance as a condition for financing.
SunTrust Investment Services, Inc. offers a wide range of key person policies, including life and disability coverage and business overhead insurance, which provides businesses with the funds they would need to continue operating should their owners become disabled.
Key person insurance can protect your business from the loss of crucial employees in a number of ways:
- Provides funding to find, recruit and train replacements
- Helps replace profits that were lost as a result of a key employee’s disability or death
- Bolsters balance sheets to help reassure creditors about the continued viability of the business
- Enables businesses to buy back stock from the estate of a majority owner
A SunTrust advisor can explain the benefits and options, and help you determine if key person coverage is right for your company. Speak with a SunTrust representative at 866.495.5416