Is Your Business Prepared To Survive The Loss Of A Key Employee?
Overcoming The Unthinkable
Amanda Moses was straightening up her home when the news came across the television. A small plane had crashed at the nearby Talladega, Alabama airport. There were no survivors. Amanda’s husband, Jeff, and four co-workers were aboard, on their way home from a trip to see clients in Ohio. In an instant, Amanda had lost the love of her life, and her sons, Josh, 22, and Eric, 17, had lost their father.
The accident also dealt a serious blow to Auto Custom Carpets, the world’s leading manufacturer of automotive floor coverings. Jeff was president and one of three partners. The accident wiped out most of the company’s sales force, and now the jobs of more than 150 employees hung in the balance.
Is your business prepared for the loss of a key employee?
Your business is probably like most: one or two of your employees are vital to the survival of the organization. Consider purchasing key person life insurance to reduce the backlash in the event that one of these key employees leaves prematurely.
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Jeff Moses’ death left a huge void in the company’s leadership team. Not only was Moses the president and co-owner of Auto Custom Carpets, he was also a charismatic sales leader whose product knowledge and extensive industry experience were integral to the company’s success. Without Moses leading the way, the company could expect an immediate and precipitous drop in sales revenue.
The future of Auto Custom Carpets—and its 150 employees—hinged on the ability of the two remaining partners to quickly find and recruit a qualified replacement before the company’s working capital dried up.
Ken Howell, one of Jeff’s partners and a long-time friend, didn’t panic. He knew the company would be all right because of business insurance plans put in place with the help of an insurance professional.
Life insurance policies for the partners funded a “buy-sell” agreement. With the proceeds from Jeff’s policy, the two remaining partners bought out Amanda’s stock, leaving them in control of the company. The business had also purchased “key person” insurance on the lives of all three partners. Within 30 days of the tragedy, money from this policy was used to hire a salesman from one of the company’s competitors.
As for Amanda and the boys, they’re financially secure because of life insurance Jeff owned individually, plus the money Amanda received through the buyout. “I feel blessed that he loved us enough to have the foresight to take care of us,” says Amanda.
We Can Help You Prepare For The Unthinkable
Is your business prepared to survive the loss of a key employee? Not sure? Contact Blair Patton at 1-800-661-1518 ext.1391 or email firstname.lastname@example.org to discuss whether Key Person Life Insurance is the right fit for you.