Pensacola, Fla. (PRWEB) April 7, 2009
MEG Financial, founder of www.keypersoninsurance.com , a specialized national provider of key man insurance, is warning businesses of all sizes to hedge against “key man risk”. Successful companies that are dependent upon one or more key people need to seriously consider key man insurance to protect against the potential loss of an indispensable executive.
The recent Fitch Ratings downgrade of Berkshire Hathaway (NYSE: BRK-A)(NYSE:BRK-B), one of the nation’s best run and most respected investment holding companies, emphasizes how important one individual can be to the success or perceived success of an organization. In fact, one of the main reasons Fitch provided for cutting the financial ratings of Berkshire Hathaway was the “key man risk” linked to Warren Buffett’s ability to continue to negotiate deals and make investments on behalf of the company.
The Ultimate “Key Man”
Warren Buffett, the 78 year old “Oracle of Omaha”, is the Chairman and CEO of Berkshire Hathaway and its largest shareholder. He is known the world over for his ultimately successful value investing strategies and as of 2009 ranks second on the Forbes list for richest people in the world. His significance to Berkshire cannot be overstated which is why Fitch emphasized “key man risk” as a reason for the downgrade.
Losing a Key Executive Would Seriously Impact Most Companies!
Key employee exposure is not exclusive to large publicly traded organizations like Berkshire Hathaway. In fact, small and medium sized businesses are even more reliant on the talents and experience of a select few. In these cases, it is even more crucial to protect the company from the untimely death or disability of a significant bottom line contributor. In fact, in smaller organizations, one individual can be so vital to the overall success of a business that if they leave the company, become disabled or die, the company dies as well. However, the good news is that there is an easy and inexpensive way to protect against the risk of the loss of a key employee or executive.
Key Person Insurance is the Best Solution to “Key Man Risk”
Key man insurance, commonly referred to as key person insurance, is the most effective and efficient tool a business can use to guard against the death or disability of a highly valued employee or business owner. For years, companies both large and small have purchased and owned both key man life and key man disability insurance policies on the lives of their strategic people so that business continuity can be maintained in the unforeseen circumstances of a death or disability.
Don’t Be Shortsighted When It Comes to Buying Key Person Insurance!
The recent downgrade by Fitch of Berkshire Hathaway, one of the largest and most highly respected companies in the world clearly emphasizes the need for businesses of all sizes to consider key man insurance. If Berkshire Hathaway can be downgraded for its exposure what company is immune to the “key man risk” of losing a master technician, top salesperson or CEO?
For additional information on key man insurance, contact Michael E. Gray, Jr., Independent Insurance Agent and President of MEG Financial or visit our website keypersoninsurance.com
For the past 15 years, MEG Financial of Pensacola, Florida, a nationally known key man insurance specialized brokerage firm, has worked with businesses to secure key man insurance and to promote it as an intelligent and inexpensive way to protect against “key man risk”. MEG Financial’s key man website offers instant key man insurance quotes for companies of all sizes across the country.
Michael E. Gray, Jr., Independent Insurance Agent and President
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