Key Person Insurance in Florida to Protect Your Business Continuity
Secure Your Business Against the Unexpected – Key Person Insurance
Keep the company steady when a linchpin is lost.
Key person (key man) insurance is life (and optionally disability) coverage taken out by your business on a crucial owner or employee. The business pays the premium and is the beneficiary, using proceeds to cover lost revenue, recruit and train a replacement, reassure lenders, and stabilize cash flow. Around Vero Beach and the Treasure Coast—where many companies rely on a few rainmakers—Complete Trust Insurance structures coverage alongside your broader life & financial insurance plan and overall commercial insurance program.
Who Qualifies as a Key Person?
Identify the People Your Business Can’t Afford to Lose.
Founders whose relationships drive sales, top producers generating a disproportionate share of revenue, specialists with unique certifications, or anyone whose absence would materially impact operations are candidates for key person coverage. If losing one person would threaten payroll, loan covenants, or major accounts in Indian River County—protect that role.
How Businesses Use the Benefit
Stabilize and Buy Time to Rebuild.
- Cover salaries, rent, and operating expenses through the transition
- Fund recruiting fees, signing bonuses, and training for a successor
- Pay down debt to maintain banking relationships
- Provide confidence to investors and key accounts
If ownership transfer is part of your plan, pair this with
buy-sell agreement funding to keep equity in the intended hands.
How It Works
Simple Structure, Powerful Protection.
Your company purchases and owns the policy, pays premiums, and is listed as beneficiary. If the insured person passes away, the business receives the lump sum. Term life (10–20 years) often fits finite needs; permanent life may suit long-horizon roles or succession plans. We can also discuss disability key person coverage to address long-term incapacity.
Peace of Mind for Stakeholders
Signal Resilience to Lenders, Partners, and Your Team.
Documented continuity plans and appropriate insurance limits help maintain credit lines and reassure employees and customers from Royal Palm Pointe to Downtown Vero. We’ll right-size coverage to current valuations—and revisit it as your company grows.
Frequently Asked Questions
Key Person Insurance Questions From Florida Businesses.
Who owns and pays for key person insurance?
The business typically owns the policy, pays the premium, and is the beneficiary.
Should we use term or permanent insurance?
Term is cost-effective for finite risks (e.g., a growth phase). Permanent can fit long-term needs or when building cash value is desirable.
How much coverage do we need?
Start with the estimated revenue/profit the person drives, replacement costs, and debt obligations. We’ll help model limits that fit your financials.
Are premiums tax-deductible?
Generally no; proceeds are typically received income-tax free to the business. Always confirm with your tax advisor.
What about disability—are we covered?
Life policies pay on death. For incapacity, a separate key person disability policy can provide funds if a key person cannot work.
How is key person insurance different from a buy-sell policy?
Key person stabilizes operations; buy-sell agreement funding finances ownership transfer per your agreement.
Can we change the insured or coverage later?
Policies can be adjusted or rewritten as roles evolve. We’ll review annually to keep coverage aligned with growth.