What is Key Person Insurance?

Key Person Insurance Could Save Your Business 
Even in this era of teamwork, it’s only realistic to acknowledge that some people contribute more to a business’s success than others. If one of your employees were to leave your company, are you worried it might not recover from the loss? If so, this employee is considered a “key person,” and there is insurance to deal with his or her loss should it occur.

Who is a key employee?

These policies are usually intended for business owners, but they might also be appropriate for top salespeople or anyone else deemed “key” to the business’s success.

How does this policy work?

In key employee insurance, the company pays premiums for an employee because it would experience a severe setback if something happened to that individual. The benefits would help the company weather the tough times resulting from the employee’s loss until it could find its footing again.

Depending on the type of policy purchased, key person insurance may be considered an employee benefit. It would build cash value during an employee’s time at the company, and the company might agree to give a percentage of that cash value to the employee on retirement-which gives the employee an excellent reason to stay.

In this is a policy the details really matter. You’ll need to decide who you can and can’t do without and what type of policy is best for your business. Your insurance agent will tell you more about how key employee insurance works and advise you on which policy makes sense for you.


INNOVATION
Is Creativity for the Few or Can We All Learn to Innovate? 

CreativityIn business, creativity equals success. Those who can think outside the box may become superachievers. But, according to the latest business theorists, creativity is not the purview of a few; it can be learned.

In the Wharton School of Business’s online business management series, marketing professor Rom Y. Schrift writes, “I think there are individual differences in our propensity to be creative but having said that, it’s like a muscle. If you train yourself…you can become more creative. There are individual differences in people, but I would argue that it is also something that can be developed, and therefore, taught.”

Malcolm Gladwell, author of Outliers: The Story of Success, concluded through the examination of high achievers’ lives that 10,000 hours of practicing a particular task builds new creative skills that lead to significant innovations. However, Gladwell subsequently clarified his position in a reddit “Ask Me Anything” interview: “Practice isn’t a SUFFICIENT [sic] condition for success. I could play chess for 100 years and I’ll never be a grandmaster. The point is simply that natural ability requires a huge investment of time in order to be made manifest.”

As Cody C. Delistraty says in an article in The Atlantic, “Prevailing theories on creativity focus on methodology, or amount of practice. But new studies suggest artistic talent may be more hardwired than we thought.”

In other words, some people are just born creative. But, as Schrift might say, that doesn’t mean you can’t work hard to develop creativity.


HOT BIZ TRENDS
 Creating a Sense of Belonging at Work? 

BelongingA sense of belonging is a critical mental health concept. When it’s missing, individuals feel lonely and detached.

As Karyn Hall, Ph.D., director of the Dialectical Behavior Therapy Center in Texas, wrote in Psychology Today, “A sense of belonging to a greater community improves your motivation, health and happiness. When you see your connection to others, you know that all people struggle and have difficult times. You are not alone. There is comfort in that knowledge.”

But how do organizations build that sense of belonging that appears so very important to employees and their employers?

When employees have friends at work, it enhances their sense of belonging. That’s why so many companies encourage opportunities for informal at-work contact.

These companies make a special effort to bridge the chasm between “we” and “they” by forging teams among different silos. In a Herd Wisdom post, organizational consultant Meisha Rouser suggests, “When employees are able to span functional boundaries to connect to each other it builds a sense of unity and partnerships.”

Shared vision and ownership is another way to build a sense of connection. Smart company leaders invest time in communicating their vision and sharing their goals.

What’s more, fostering two-way communication by inviting input and acting on it shows employees they are valued and respected-keys to a feeling of belonging.

Savvy employers also encourage their employees to have a life outside work, offering family-friendly work options, encouraging volunteerism, and even paying for fitness memberships. Why? Simple. Happy employees are good employees.


INSURANCE 
Protect Your E-Business with Special Insurance 

The Internet has made many things possible, and one of these is running a business from the comfort of your home. For many, the dream of becoming one’s own boss is now a reality, but that doesn’t mean you don’t need comprehensive commercial insurance. While some of your insurance needs are the same as those of a regular storefront, you also face different risks that standard insurance policies might not address.

The majority of businesses today obtain insurance coverage through a Business Owner’s Policy (BOP), which lumps several different types of policies into one plan. Luckily, this can be tailored to meet your needs; but exactly what kind of insurance does an e-commerce business need?

First, you’ll still need to invest in standard policies such as:

Property insurance: Just because you aren’t operating a physical business doesn’t mean you don’t need property protection. What if your headquarters/home were to catch on fire? This type of insurance would help pay for repairs, but it can also help cover computer issues and data loss.

Liability insurance: If someone tries to sue you, whether it’s from data loss or libel, liability insurance will help pay for defense costs as well as for settlements against you. It’s extremely important to set the appropriate limits for this coverage, as lawsuits can sometimes climb into the millions of dollars.

Workers compensation: If you have one or more employees, it’s likely required by your state that you offer them workers compensation. If someone is injured while at work, this benefit pays his or her medical expenses and protects you from being sued. Make sure you check with your state board to ensure your policy meets the law’s standards.

Then there are other less common forms of insurance you should consider, including:

Intellectual property insurance: A form of liability insurance, this coverage protects you in case you’re sued for copyright infringement. Even if you’re certain your idea or trademark is 100 percent original, many claimants simply take businesses to court because they know those companies don’t have the money to pay for a court case.

Transportation insurance: Many e-commerce businesses are retail based and rely on second-party shipping and handling to transport goods. Although many shipping facilities have insurance policies of their own, you need to be sure your goods are covered. This policy helps you recover from losses resulting from a failed shipment.

Business interruption insurance: While it’s true the Internet never sleeps, there’s always a chance that a glitch could knock you offline for days, whether it’s a natural disaster or a third-party problem. If it’s a long enough interruption, you could suffer profit losses. This type of policy can help you recover once you’re back online.

It’s important to connect with your insurance agent when searching for e-commerce insurance products. Data and Internet security is a top priority, and malware isn’t the only threat lurking around the Internet. Like the Internet, insurance has no physical presence, but when you need it, it’s there.

July 10th, 2015 by Lightship Insurance