What’s Key Person Disability? Key person disability insurance is fashioned to safeguard a Colorado business if a key person cannot work due to disability from a sickness or from being injured. A key person is a manager, executive, high level salesman, or important employee. Like key man life insurance, this policy works to compensate a business to cover the loss of that key person, except in this case the employee is only disabled. This compensation allows for normal operations to continue.
Key Man Disability Insurance Policies
Key man disability insurance policies are placed on groups of key employees or a single key man within a business. This disability insurance protects the company from the financial loss. The financial loss is directly tied to the contributions of the key individual that the policy covers. In many cases, a key man who is disabled must be replaced, the benefits could be used to locate and train a replacement. It may be used to attract a new top performer with a bonus cash incentive. Disability benefits could be used to keep clients or attract clients who left as a result of the loss. The influx of cash from the policy proceeds can be used in any way that stabilizes the company.