As a business owner, you know that your employees are an important asset of your business. Each business has individuals with specialized skills, knowledge, and valuable customer relationships that are critical to its success. If your business relies heavily on key employees, it may suffer tremendously without those individuals and it may be a good idea to think about investing in key person life insurance.
What Impact Does Losing a Key Employee Have on Your Business?
When you lose a key person within your business you may have to take on additional duties that could change your lifestyle and how the business operates on a daily basis.
The loss of a key employee may also result in:
- Decrease in sales and profits
- Loss of customers
- Costs to recruit, hire, and train a replacement
- Reduced employee morale
- Loss of confidence of creditors and suppliers
- Damaged or weakened relationships
- Costly mistakes due to inexperience
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