Question

In those instances in which the death of a valued employee could cause financial hardship for a company, the company might acquire additional funds through which type of coverage?a. Preferred Insuredb. Business Continuationc. Employer-Employeed. Key Person"

Answer 1

b. Business Continuation

Step-by-step explanation:

Business continuation insurance is a type insurance structured to protect against the financial effect of the death of an employee or business partner.

The death or disablement of a key executive can cause stress and financial difficulties. In some cases, the lack of clear leadership and business struggles can create disruption so severe that the business may fail.

it covers losses and serve as a means of financial assistance which enable business continuity if a key executive, owner, or partner of a business dies or becomes disabled.

Answer 2

Key Person

Step-by-step explanation:

The key person insurance policy is undertaken by an organisation on the lives of very valuable or key employees of such companies. The key person insurance is also referred to as Key employee or Key man insurance.

Because the organisation pays the premium, it is the owner of the policy, therefore, the benefit of the policy if the person dies goes to the organisation.

It is usually undertaken by organisations to compensate for the loss or fill the vacuum that will be left if a very important or expert employee should suddenly die.

For instance, some people patronise a particular business because of the expertise of one of the salespersons, if this salesperson should die, for instance, the company may lose customers and even demand due to the disinterest of some customers. The key person insurance is taken for such a time.