Why Key Man Insurance Is Important In Dallas Texas?

Key Man Insurance is more important than ever in Dallas Texas, as it can make or break your business in the event of a tragedy.  Key man insurance is designed to protect a company in the event of an injury or death of a key employee such as top sales personnel, executives, or business owners.  Many people assume that key man insurance is only life insurance, but it also includes disability insurance.  In today's world having both for a business can mean the difference between surviving a tragedy or having to shut a business down.

How much Key Man Insurance does my business need?

The amount of key man insurance required for a business will vary based on the type of business and the role of an individual being insured.  As an example, lets take a look at a top salesperson for a company.  In many small to mid sized companies with a small sales force revenue could be dependent on the expertise of a few key sales personnel.  In the event one of these individuals were to lose their life or become disabled its important to answer a couple questions to begin to determine how much is needed:

1. What percentage of gross revenue can be directly attributed to the individual(s) needing to be insured?
2. If they had to be replaced what are the total costs involved in finding new talent and training them to replace the talent that is either disabled or has passed on?

What is the Impact by not having Key Man Insurance in my business?

Lets stick with the example of a top salesperson to illustrate the impact on a business.  Lets say for example that your top 2 sales personnel accounted for 30% of your gross revenue annually.  What would the impact on your bottom line in this economy be if one or both of them were to lose their life or become disabled and no longer be able to work?  In most businesses this would have a dramatic effect and might mean having to close down operations.   With many businesses having to cut back to survive and ultimately begin rebuilding in today's economy, its far too important not to have key man insurance in your company to ensure it will survive in the event of a tragedy.  Contact me at here at TxInsurancePro.com for more information on how we can help your business survive in the event of a tragedy with Key Man Insurance.