A company's biggest asset rides the elevator every day and is driving the business forward.  A disability to a key person can devastate a company and wreak havoc on personal and business finances, as well as the company's future.   In today's competitive business environment, protecting the value of a star executive is more critical than ever.  Luckily there are tools and resources available to you if you know where to access them.  

While Key Person Disability is available in the U.S., it caps out around $750,000 in benefits and is only available in a few select states.  If your client is requesting a higher benefit limit, there is an insurance solution available from the Excess Lines Market, like Lloyd's of London.  As a Lloyd's of London Coverholder, we have the authority to issue up to $50 million of key person disability using the same requirements needed for placing the life insurance.  Most transactions take place at the $3-10 million range and many of our best advisors only write 2-3 deals a year.  That said, over time they have created significant recurring revenue for their practices as they earn more from the disability plans than they do from placing a term life insurance contract.

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An advisor recently reached out to us with a request we see often.  The advisor had a private equity investor client who purchased 51% of an CEO's commercial energy construction business.  As part of the transaction, it was mandatory that the company acquire key person disability on the CEO as stated in the firm's newly established operating agreement.  A custom key person disability solution was designed to the tune of $3 million to protect the investor's stake in the business. 

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As we gear up for the new year, now is a great time time to re-evaluate the risk to key personnel and C-Suite executives by looking at how they are leveraged against the success of the company, and the impact should they not be able to perform their duties.  When looking through your book of business, focus on your business owners, key executives, chief technology officers and hedge fund managers with a key person life policy – they are all ideal candidates for a high limit key person disability policy.  

Interested in learning more? Schedule a meeting with our business development team today!