Contract Frustration
In the unfortunate event that an essential team member passes away, this coverage responds to many professional concerns. It provides funds to help your cannabis company recover from the loss and eases investors’ financial concerns while letting you focus on your team and business’s future.
Who is Contract Frustration Insurance for?
Emotions run high when an essential member of your team passes away. Amid the natural grief, the loss might leave company leaders wondering how to handle the future. There might be investors to reason with, a new business future to reimagine, and team members to comfort. No individual’s death is more or less important than the next; however, someone with such significant responsibility often leaves a gaping wound in the professional world.
Contract Frustration Insurance (CFI), also known as key man or key person insurance, responds to help the company after losing an essential team member. Like term life insurance, this policy provides capital to help the company move on without that specific person. Investors might worry about the financial impact they’ll experience after the key person’s death — but the payout capital helps ease these worries. Additionally, it helps cannabis companies find a replacement while letting other members focus on grieving and creating a new future for the business.
Investors
Key person insurance provides security that can help attract new investors and ease the concerns of existing investors.
Companies
The payout can soften the blow of the disruption to operations by assisting with some of the costs associated with the loss
Teams
Uncertainty about job security is the last thing your team should be worried about following a tragic loss.
Why you need Contract Frustration Insurance?
Helps you to focus on your team and the future of your business
Serves as a safety net to ease investor’s financial concerns
Provides capital to help your company recover from the massive loss
86%
Roughly 86% of US businesses are made up of 20 people or fewer.
22%
Less than a quarter of US businesses have key person life insurance.
71%
Over 71% of organizations are dependent upon one or two key people for their success.
What does Contract Frustration Insurance cover?
Key person insurance, also known as key man insurance, responds to help the company after losing an essential team member. Like term life insurance, this policy provides capital to help the company move on without that specific person.
CFI Benefits vs. Traditional Key Person
CFI Benefits vs. Traditional Key Person
CFI Claim Examples?
Interconnected
If an employee’s name or unique skill critically connects the company and its finances, their death could shutter the business for good.
Partner Buyout
Many businesses are partnerships, but the partnership outlives one partner. The other partner often desires to buy out the deceased partner.
Top Salesperson
Suppose a top salesperson passed away, causing the company’s finance to suffer significantly.
Contract Frustration Insurance FAQ’s?
Although no set formula exists for deciding how much to buy, start by reviewing the financial impact a key person’s passing would have on your business.