Protect Your Business with Contractors Insurance and Bonds

Key Man Insurance (also known as Key Person Insurance) is a life insurance policy that a contracting business takes out on a crucial employee, such as an owner, lead contractor, or highly skilled specialist. If the insured key person passes away or becomes disabled, the business receives a payout to help cover financial losses and maintain operations.

• Many contracting businesses rely on the expertise, client relationships, and leadership of a few key individuals.
• If a key contractor, project manager, or business owner passes away, the business may struggle to complete projects, find a replacement, or cover outstanding debts.
• Some lenders, investors, or bonding companies may require key man insurance before approving financing or contracts.

1. Death Benefit Payout
   
   • The company receives a lump sum if the key person dies.
   • Can be used to pay off debts, cover lost income, or fund the search for a replacement.

1. Business Continuity Support
   
   • Helps cover operational costs, ensuring the business can continue without immediate financial strain.

1. Loan Protection
   
   • Can be used to pay off business loans or financial obligations tied to the key individual.

1. Buy-Sell Agreements (Optional Add-on)
   
   • If multiple owners exist, the payout can help surviving partners buy out the deceased owner’s share.

✔ General contractors who own or run a small business
✔ Specialty trade contractors (HVAC, plumbing, electrical)
✔ Businesses heavily reliant on one or two key employees
✔ Companies with loans or financial obligations requiring a key person for repayment

• Protects the company from financial instability if a key leader is lost.
• Helps fulfill financial obligations to lenders, investors, or partners.
• Ensures continuity of projects and contracts.

Would you like help estimating coverage amounts for your business?