Would your small business continue to thrive without “that guy”? You know, “that guy.” The employee who is the first one in, last one out, can seal any deal, always smiles on Mondays and makes the best pot of coffee in the morning. While your business might suffer if “that guy” were to pass away, there is a way for you to financially protect yourself from the passing of “that guy”- key person life insurance.

Key person life insurance is a life insurance policy that business owners can take out on their star employee. The policy can cover the income your company loses after “that guy’s” clients start going over to your competitor. The amount and cost of insurance needed for a particular business depends on the situation and the age, health and role of the key employee.

Key employee life insurance pays the company a death benefit when the employee dies. A key employee life insurance policy is usually owned by the company, which pays the premiums and is listed as the beneficiary.

So if your company is worried about what could happen to your revenue if “that guy” were to pass away, it is probably worthwhile to ask your insurance provider about key person life insurance policies.