What type of insurance should a company consider if its success depends on a specific individual?

A company that relies heavily on the skills, knowledge, or relationships of a specific individual should consider key man insurance. This type of insurance protects the business in the event of the untimely death or incapacity of that key individual. The financial loss sustained by the company can be significant, as the absence of that person may impact operations, financial performance, and the company's reputation.

Key man insurance provides the business with funds to help cover lost revenue, hire a replacement, or manage other expenses that may arise due to the key person's absence. It acknowledges the fact that some individuals hold unique value to the company, and insuring them helps safeguard the enterprise from unforeseen events that could jeopardize its stability and future.

In contrast, health insurance primarily covers medical expenses for employees, workers' compensation insurance deals with job-related injuries, and life insurance (when not specific to a key individual) is generally meant for personal protection and may not directly address the impact on business operations. Thus, key man insurance stands out as the most suitable choice for businesses dependent on specific individuals.