Every business has someone who is irreplaceable — the founder who holds all the client relationships, the top salesperson who drives 40% of revenue, the technical expert no one else can replicate. If that person died or became permanently disabled tomorrow, what would happen to your business? Key person insurance answers that question with cash — giving your company the financial breathing room to survive, restructure, and recover while the business continues.
What Does Key Person Insurance Cover?
- Death benefit paid to the business upon the insured key person’s death
- Funds to recruit, hire, and train a qualified replacement
- Lost profits and revenue attributable to the key person’s absence
- Loan repayment obligations that could come due if the business loses its key person
- Disability buy-out funding if the key person becomes permanently disabled
- Buy-sell agreement funding to buy out a deceased partner’s ownership stake
- Term, whole, and universal life structures to match your business’s financial goals
- Coverage for multiple key employees under a business-owned life insurance program
What Lenders and Investors Know That Many Business Owners Forget
SBA lenders, commercial banks, and private equity investors routinely require key person insurance as a condition of financing — because they know that the death or disability of a critical person can destroy a business’s ability to repay a loan or generate returns. If your business has not addressed key person risk, it is not just a business continuity gap — it is a creditor concern.
How Much Key Person Coverage Does Your Business Need?
A common formula is 5–10 times the key person’s annual compensation, adjusted for their actual contribution to revenue and the estimated cost of replacement. For a founder or owner-operator, the amount should also account for any debt that would become callable upon their death, the value of client relationships they personally maintain, and the estimated time to profitability for their replacement. We help you run the numbers and structure coverage that actually matches your exposure.
Get Key Person Insurance in Orlando, Florida
Insure USA, Inc. is an independent agency serving Orlando and all of Florida. We compare Key Person Insurance options from multiple top-rated carriers. Call (321) 235-7377 or request a free quote online.