Insurance is a part of life. Most of us accept that it is worth the monthly payment to rest assured that if the unexpected happens, we’ll be okay. Whether it be car, house or life insurance, we like to be covered.

One aspect of our lives we may not think about, however, is our place within the business we work for or own. What would happen if you couldn’t show up for work tomorrow? Think about all the things that only you can do with your specific set of skills, talent and knowledge.

It’s not all about the bottom line. As tough as it can be to define intellectual property, it is an invaluable asset to businesses small and large, and shouldn’t be overlooked. In many ways you are irreplaceable, and the business may sink without your expertise. 

We spoke to a couple local business owners about how they ensure their companies would keep running smoothly, even in their absence. Key person insurance is meant to provide a safety net for just these cases. Whether you’re the owner, director or an employee, it covers those whose absence would hinder a company’s main operations.

When a company loses a key person due to unforeseen circumstances, they can suffer from loss of revenue, productivity or overall functionality depending on the size and structure of the business. At such a time, the last thing anyone involved wants to have to worry about is the funds and time it will take to find someone to replace you.

Jude Brunt of Blarney Stone Irish Tavern at Big White has been running her pub for 10 years now. As she and her business partner started getting older, they decided it was time to make sure their business was covered in case of their absence.

“We’re both integral to this business, both very operational and hands-on and have key roles, but we have different roles that are very specific and important to the restaurant,” Brunt explained. “If something were to happen to one of us, the other would be either forced to sell, and with key person insurance we can work to get equal shares in the business, or we can use our insurance to have the time to recruit a similar person who could take over my role.”

So how do you decide who needs this insurance? If someone’s role is truly irreplaceable and the business could potentially fold without them, then it is something to consider.

Mary Clark, the local founder and CEO of an educational technology platform called Agents of Discovery, also holds key person insurance to protect her business. The company aims to get kids moving and interacting with the world as they learn, and Clark is passionate about their goal.

“Agents of Discovery isn’t just a job for me,” Clark said. “I want to make sure our mission can continue under any unforeseen circumstances, and key person insurance is an important part of that.”

As a healthy person who loves her job, it’s not necessarily the first thing Clark would want to think about, but it’s also very important to her that the business would continue under any circumstance.

“As the founder and CEO, I am the voice of the company and wear many hats,” Clark explained. “But my whole team works hard together and believes in our products, so I want to make sure they would be able to continue without interruptions if I were unexpectedly unable to work.”

It’s not something many people want to think about, but life is anything but predictable. In the short term, key person insurance may even seem like a negative factor on your bottom line, but it can be the thing that keeps your business going in the long term.

At Valley First, they know how important it is to focus on running your business. That’s why they provide insurance to cover you in case you lose a key person you need to run your business successfully.

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