Key Employee Replacement Insurance Coverage

Protecting your insureds from the unexpected could be as easy as insuring them with Key Employee Replacement Coverage. An insured’s Key Employees are a crucial part to the way they do business and how they operate effectively and efficiently.

To understand the value of a Key Employee, you have to understand the substantial difference they offer in the work environment and the significance they bring to the table for your insureds. When, and if, an unexpected incident occurs and your insured’s Key Employee is severely injured or suffers a fatal accident, being prepared and protected with Key Employee Replacement Coverage may provide considerable relief and the necessary assistance required.

It is unfortunate, but many nonprofits and for-profit social services organizations will tend to disregard the coverage and function with a limited staff during this trying time. Rather than creating additional stress, you can protect your insured with Key Employee Replacement Coverage, which offers to reimburse them for covered expenses so they may continue normal operation.

Covered expenses also include the cost of a comparable replacement while a permanent replacement is explored, hired and trained. Additional expenses may also include:

  • Advertising costs
  • Travel, lodging and meal expense for potential candidates
  • Background checks and reference checks
  • Legal expenses to draw contracts
  • Relocation costs
  • Replacement’s first year salary
  • Increased benefit costs
  • Training and education costs for replacement
  • Standard coverage limit $25,000 per scheduled employee

Key Employee Replacement Coverage is an optional endorsement to Professional Liability with our Social Services Insurance Program and Home Health Care Insurance Program. For more information, call us at 877-456-5323 or email us at You can also find us on Google Plus, Facebook, LinkedIn and Twitter!

AFC Insurance writes this blog. The content and opinions expressed in this blog are strictly for informative purposes from sources that are presumed accurate. AFC Insurance does not assume responsibility for any misguided information and no guarantees are implied.