Key Person Insurance: Safeguarding Your College’s Future

Key person insurance is a strategic financial tool that colleges can use to protect against the potential loss of a critical team member, such as a founder, owner, or top executive. This type of insurance provides a payout if a key person dies or becomes disabled, which can be used to cover financial losses, recruit a suitable replacement, or stabilize operations during the transition period. For career colleges, losing a key person can have far-reaching consequences, including disruption of daily operations, loss of expertise, and damage to reputation and student retention. By securing key person insurance, your college ensures that it has the financial resources to manage these challenges without suffering severe financial strain. This insurance is particularly important if your institution heavily relies on the skills, connections, or reputation of specific individuals. Assess which individuals are essential to your college’s success and work with an insurance provider to determine the appropriate coverage amount. Protecting your college from the unexpected helps maintain stability and confidence among staff, students, and stakeholders, ensuring the continued delivery of quality education and services, even in challenging times.

NACC has partnered with HUB Insurance to provide a one-stop-shop for Commercial Insurance, Employee and Student Benefits, Group Retirement, Surety and Personal Insurance. To discuss your college’s unique needs please complete the form found here: HUB Inquiry Form