You are here now : Activate Breadcrumb NavXT Plugin

Key-Person Policy Insurance – Something A Smart Business Needs

2019 March 2 by

Why A Business Should Purchase Key-Person Insurance?Key Personal & Employees at Medical Company

Any person that makes a valuable contribution to a company may be deemed a key person. A scientific or medical company may rely on a specific scientist working on a new drug. A manufacturing company may depend upon the talent of a specially qualified engineer. The CEO or President of a private company be a key person for life insurance.

Why Purchase a Key-Person Policy?

A small business is often extremely vulnerable to the loss of one or two key people. In the event of an untimely death or disability, the policy would provide the financial means for the small business to continue operations despite the loss of the critical employee. Business owners also opt for key-person protection to satisfy the concerns of investors, shareholders or partners.

What Is Commonly Covered?

In general, key-person policy insurance protects a business against lost profits directly related to the specialized skills or contribution of the particular employee. Losses related to the need to hire or replace a critical employee.  Additionally, for the interest and protection of shareholder or partner interests is also a typical provision.

Understand The Difference: Key-Person Versus Life Insurance

Small-business owners often confuse key-person coverage with life or disability coverage. In fact, some business owners purchase life insurance on a key employee rather than key-person coverage. Unfortunately, that may be a mistake. Both life insurance and key-person coverage protect a critical employee, but there are a few important differences that every small-business owner needs to understand in order to make an informed decision.

For example:

  • Protecting the Business: The main difference between the policies is the emphasis on protecting the business versus the employee. In the event of disability, the impact on the company may be substantially different than on the individual. Key-person policy insurance recognizes that impact and provides valuable protection for the business.
  • Minimal Coverage: One of the most significant reasons to purchase key-person coverage rather than a company-owned life insurance policy is the dollar amount of potential damages. The coverage of most life insurance policies is fairly minimal when compared to the real value of the company.For example, a life insurance policy in the amount of $1 million or even $5 million may be very small in relation to the full value of the company itself. Investors, partners and other stakeholders need assurance that they are protected in the event a critical contributor is no longer able to perform.
  • Tax Free: Last but not least, most proceeds received by a business in the event of a claim are tax-free, which is a significant advantage to a small business required to justify long-term expenditures during a period of adjustment and growth. By minimizing risk and locking in affordable long-term security, it’s possible for a small business to generate impressive investor interest, especially given the relative scarcity of alternatives in today’s tough economy. Thus, tax-free claims, protection for the business and the dollar amount of potential damages are some of the reasons your business should consider looking into key-person policy insurance.

Is Professional Liability Insurance A Must?

2019 February 8 by

Did You Know?

You’ll need a wide range of business insurance policies, starting with your landlord. Most startups need property insurance, employee dishonesty insurance, and workers compensation coverage.  The majority of  businesses can purchase an affordably priced “Business Owners Policy or “BOP” policy. However, when it comes to the general liability business insurance your company needs, focus not just on slips and falls. Focus on bigger mistakes that could lead to costly lawsuits. This is when professional liability insurance helps fill the gap.

You may have read statistics that a substantially large percentage of companies just starting out fail. In addition to lack of capital, another key reason for business failure may be attributed inadequate limits and types business insurance to protect potential clients from the risks you represent to your clients. Whether you are just getting your business off the ground or your scaling up, potential clients need to know you will protect their financial interests. Insurance coverage will be a consideration in who they may choose as an adviser or consultant. In the case where you may be requested to sign an agreement, request the insurance coverage requirements prior to agreeing to the contracting fees. The cost of coverage is industry specific, based your experience, historical data, and character of the services provided your client.  

How Professional Liability Insurance Helps You?

Professional liability insurance is a type of coverage that provides protection from negligence claims similar to  types of commercial liability insurance. However, this focuses in specifically on the mistakes you make or the failures that occur as a result of the advice and /or  guidance you provide. Professional liability insurance goes further than what your basic general commercial liability business insurance plan. It gives you more coverage for a different type of risk and generally much larger financial claim. Operating in the disruptive, innovative, and comprehensive environment your business is working in today’s world insurance helps with financial security.

Who needs it?Home Business Insurance

  • Are you making decisions about the operations of your company?
  • Are you providing advice or guidance to your customers or clients?
  • Are people depending on you to provide the very best advice or a very specific outcome?

If so it is time to upgrade your business insurance to reflect this higher level of risk. Professional liability insurance can help you get there.

The good news is that this form of commercial liability insurance is readily available and it can be customized to address the specific risks associated with your industry and even your local environment. Talk to your business insurance agent today about upgrading your coverage. It could be what keeps your new business operational and growing rather than shuttering its doors for a negligence claim.

How Life Insurance Helps Your Loved Ones

2019 January 29 by

Special Moments, Difficult Discussions

It’s a lovely Sunday morning. You’re at home having a delicious breakfast with your spouse and kids. It’s a special moment when you can relax and forget the stress of everyday life. All you want to do is enjoy the smell of buttered bread, spend time with your family and chat for a while. We don’t know you personally, but we’re pretty sure there’s at least one topic you wouldn’t bring to the tablealthough you should: death.

There are many reasons why people avoid talking about death, but allow us to give you a piece of advice: Having this tough conversation shows how much you care about your loved ones. Dealing with death requires some preparation and you should start making important decisions while you can. One of them is assessing the necessity of purchasing life insurance. You can think of it as a financial tool that will be a weight off your heirs’ shoulders. Here’s why:

Financial Protection For Loved Ones

Living as a couple is a journey that involves sharing dreams, establishing plans, and making investments. From having kids, to buying a dream house and budgeting for a vacation, everything comes with a price. When you work hard to get a promotion and your spouse gives up a fancy purchase to save money, it’s because you two are looking ahead. These mutual efforts are also an essential way to strengthen your relationship.

However, life isn’t predictable. We know that no one likes to think about this possibility, but what if one of you were to die tomorrow? Your surviving spouse’s income may not be enough to honor commitments and expenses, which could mean a change in living standards and quality of life. Unfortunately, we have to be realistic and give you the bad news: If you have children, an unexpected death would be even more troublesome. In particular, with the lose of income, food, clothes, education, housing, and health costs become a real tangible burden to those left behind.

Purchasing life insurance can give you peace of mind because then you can go to bed everyday knowing that if the worst happens, your family will suffer your loss, but they won’t have to deal with a financial meltdown at such a difficult time.

Someone Needs You

Even if you’re single and don’t have kids, there are still some situations when it’s advisable to purchase life insurance. For instance, if you take care of your aging parents and they rely on your financial assistance, an unexpected death would make them suffer twice. First and foremost, because they are grieving. Second, because they’ll have to reorganize their finances, which is always a painful process.

Dreams Remain

Don’t let dreams and plans die with you. Making sure your loved ones will be able to continue their lives is a true gesture of love. At Peter Green Insurance, we offer financial planning strategies with the benefit of  life insurance and our agents are ready to explain all the details and assist you with choosing the best option to protect those you love. Contact me for a confidential discussion. Call 888-725-7776,  send an email.

no comments

8 Reasons To Choose An Independent Agent

2019 January 28 by



Why You Should Work With An Independent Insurance Agent and Broker?

Searches Multiple Sources, Works On Your Behalf, An Entrepreneur Just Like You. Understands Expenses, Payrolls, Growth, and Profits. Aligned With Your Success, Not The Insurance Company.

What Difference Does It Make?                                                                                    
An Independent Agency Goal Is To Satisfy Your Wants With Respect To Insurance. With a Startup Business, Focus May Be On Price With Minimal Limits and Coverage. As  Your Business Grows and Expands, You May Want To Broaden  Insurance Limits and Coverage’s. Your Insurance Carrier May Need To Be Changed, An Independent Insurance Agent  Will Work With Your Changing Requirements.

What Is The Advantage To Me?

An Independent Agent Is Exactly That. Not Aligned With A Specific Brand Of Insurance Like A Captive Agent. They Are Able To Search Multi National and Regional Insurance Carriers To Balance The Cost And Coverage To Match Your Budget. In Rare Instances Of A Unique Type Of Business That Has Unusual Risks, Lloyd’s Of London May Be THe Only Alternative. The Point Is,  No Matter What The Circumstance, A Local Independent Will Be a Good Choice For Most Businesses. 

Is The Spice Of An Independent Insurance Agency Variety?

Peter Green Insurance Agency Through Its Affiliations Has Access To 120+ Insurance Companies.  A Perfect Example Of How An Independent Can Look At Multiple Carriers For Your Insurance. Whether It’s Personal Or Business Insurance, Property and Causality, Health , Life, Home and Auto, You’ll Be Working With Someone That Offers You One Place To Build Your Insurance Portfolio. An Important Consideration To Avoid “Gaps”   

Trusted Choice Independent Insurance Agent


Insurance, “Asset Protection and Financial Security”­­™Peter Green Insurance Agency


Insurance Protection For Online Publishers

2019 January 23 by

Media Liability Insurance Is Critical



Insurance protection for online publishers is an essential piece of protection for you and your business. You’re certainly aware of how the Internet has and continues to flourish in the last decade. Have you realized that all the standard liabilities that have plagued traditional print publishers in the past have shifted to the online world as well. The increase in on line publishing (blogs, web site pages, advertising, etc.) media liability must be specifically added as part of a insurance package in limits that protect your assets. Do not fall  into the mental trap of thinking your standard liability policy will be sufficient to protect you. Don’t relay on packaged commercial business policy alone. Many insurance companies will offer the coverage with limits and coverage exclusions that may not truly protect you in case of a client or third party claim. All businesses who have a website needs this coverage as well. 



Media Liability Coverage is a type of professional liability insurance, most commonly known as errors & omissions (E&O) insurance, designed for publishers, broadcasters, other media-related firms and businesses of all strips. Media liability insurance coverage protects you from claims and charges of libel, slander, copyright and trademark infringement for such items as content (expressions, photos, slogans, etc) uses on your Web site, posted on bulletin boards, in chat rooms by visitors, texting, commenting, emails in other words think everything written in what would be considered a public or perhaps a private forum. Advertising claims or words indicated in advertising, banner ads, and statements on Yelp, Facebook and all social media sites should be considered as a risk for a claim or charge against your business. 

Although the First Amendment provides important defenses to the news media, the costs of vindicating those defenses in court can be staggering. And your probably not considered a media company.  Defense expenses and jury awards against organizations can be significant.


“Many times, when I’m talking to a clients specifically in the media or publishing industry, they misunderstand what their commercial general liability policy covers,” Peter Green said in a recent profile by ia Magazine.  “In most cases, personal and advertising injury liability coverage excludes coverage for businesses in the media and internet industry. Usually, this is not clear to the client just by looking at a declarations page. Pointing out the exclusions helps the client understand the need for a separate media liability policy.” 

In conclusion, clearly you need to understand and focus on what is not covered (exclusions of a policy) within your policies. Coverage gaps in a policy can be devastating should a claim be made against you. Should you have more specific questions with regard to media liability coverage feel free to call Peter Green Insurance Agency, 714-258-2800 for a free consult or to arrange a review of your existing policies.