If a business wants to make sure it will be able to cover losses due to the disability of its top employee, the business should get which type of insurance?

To protect itself from the financial repercussions of losing a key employee due to disability, a business should indeed consider a key person disability income insurance policy. This type of insurance specifically addresses the situation where a crucial employee, often a leader or a highly skilled individual, is unable to work due to a disability. It provides financial compensation to the business, which can help cover expenses or losses incurred during this difficult period.

This form of insurance is vital because the absence of a key person can lead to significant operational and financial challenges, and having this coverage ensures that the business has the funds necessary to maintain stability while it manages the situation. The indemnity provided can be used for various purposes, such as hiring a temporary replacement or covering lost revenue.

In contrast, group health insurance policies are designed to provide health benefits to a group of employees, rather than specifically addressing the financial needs of the business when a key person becomes disabled. Health Savings Accounts (HSAs) serve to help individuals save for medical expenses and are more personal financial tools than business-oriented solutions. Business overhead expense insurance typically focuses on covering the expenses that continue even if the business owner is unable to work, rather than the specific loss encountered due to a key employee's disability. Therefore, a key person