What type of insurance should an architectural firm consider for the death of its key project manager?

Key Person insurance is specifically designed to protect a business from the financial impact caused by the death or extended absence of a crucial employee, such as a key project manager in an architectural firm. This type of insurance provides funds that the business can use to mitigate losses resulting from the loss of that individual's expertise and contributions.

In the case of a key project manager, their skills, knowledge, and relationships within the firm and with clients are invaluable. If that person were to pass away, the firm could face financial difficulties due to lost revenue, disruptions in ongoing projects, and costs associated with recruiting and training a replacement. The benefits from Key Person insurance can help cover these expenses, maintain business operations, and provide financial stability during a critical transition period.

The other types of insurance mentioned do not align as closely with the specific needs of the architectural firm in this scenario. Life insurance generally serves as a means to provide financial support to beneficiaries upon an individual's death but does not directly address business continuity needs. Disability insurance protects against income loss due to a disability rather than death, while health insurance focuses on medical expenses and does not provide coverage for business-related financial impacts resulting from a key employee's passing.