A life insurance policy paid for by the business and naming the company as beneficiary if the employee dies is known as which of the following?
A) business interruption insurance
B) key person life insurance
C) professional liability insurance
D) fidelity insurance

Question

Quizplus · Accepted Answer

A life insurance policy paid for by the business and naming the company as beneficiary in the event of the employee's death is known as key person life insurance. This type of insurance provides monetary compensation to the business in case the employee, who is considered essential to the company's success, passes away. Business interruption insurance protects the business against losses incurred due to an unforeseen event that disrupts business operations. Professional liability insurance covers professionals against claims made by clients for any errors or omissions committed while performing their professional duties. Fidelity insurance protects businesses against losses incurred due to employee theft.

A Life Insurance Policy Paid for by the Business and Naming