Key Person Risk: All Assets of a business should be insured for their full replacement value against all forms of hazard and peril. Traditional Balance Sheet Assets are typically insured correctly through a variety of Property and Casualty coverage. Often overlooked is the daily contribution of key personnel which makes this group among the most valuable Assets a business can own.
Asset Insurance Assessment
Enter the replacement value and current insurance level for each business asset category. The assessment auto-calculates based on coverage adequacy.
Asset Category
Replacement Value
Current Insurance
Assessment
Key Person Insurability
Enter each key employee's compensation and the annual factor (industry standard default: 7.5). The Level of Value equals Compensation multiplied by the Annual Factor. Enter current Key Person insurance to see the gap.
Key Person
Compensation
Annual Factor
Level of Value
Current Insurance
Assessment
Total Key Person Insurability
$0
Total Level of Insurance
$0
Remaining Key Person Insurability
$0
Insurance Gap by Key Person
Balance Sheet Impact View
Key Person liability creates a hidden risk on the business balance sheet. Without adequate insurance, the unprotected value of key personnel appears as an unfunded liability, driving Owner's Equity negative.