Key Types Of Insurances We All Need

We recently brought in Gerald Lucas as a part of our executive team. He has been an incredible asset. However, it also meant that it was intelligent to add new key person insurance to our business. Why does this matter? What other types of key insurances should we all have?

Key Person Insurance

Key person insurance is a type of insurance which protects against the loss of a ‘key’ or vital person. When a lot is riding on one person, it can be smart to have them insured. For example; if there is someone important in your business whose absence for medical reasons, or worse could have any impact on operations, even temporarily, then you want to have insurance for that. Imagine Warren Buffett passing on, or your local bakery owner being tied up in hospital for several months. Customers and shareholders want to be sure they are still going to be covered. That’s what this insurance is used for. It is a lot like life insurance, were if you are the primary earner in your home, you want some coverage for your family should anything happen to you.

Homeowner’s Insurance

Most of us either own homes, investment properties or notes on real estate. Homeowner’s insurance ensures that those assets are covered, or that at least we get financially compensated for any issues. Various types of policies are used to cover fire and theft, floods, wind or storm damage, and even the title and your rights to ownership. These insurances may provide the money to make repairs, rebuild, or battle for your ownership rights in court.

Health Insurance

While there are many debates about this, and whether there should be free medical services for those that need it, the bottom line is that we need health insurance. Not many love paying for it, but most will be glad they have it when something happens that requires a doctor.

Business Insurance

If you have a business or investments, it is wise to have them insured. This may help protect your physical, intellectual and/or digital assets. Some business plans will also provide gap insurance if income is disrupted. This can be essential for covering cash flow if banking activities are interrupted or your receivables cannot be collected on temporarily. Many real estate investors also opt for umbrella coverage which can provide a backup if damage or lawsuits threaten to exceed the coverage on any given asset.

What types of insurance do you have that are not covered here? Have you ever experienced issues when you were really glad you had insurance?

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