What type of insurance pays for hiring a replacement for an important employee who becomes disabled?

Key employee disability insurance is specifically designed to protect a business by providing financial support if a crucial employee becomes disabled and cannot perform their job duties. This type of insurance helps cover the costs associated with hiring a temporary replacement or finding alternative solutions to maintain operations. It recognizes the significant impact an important team member has on a business’s success, and ensures that the company can continue to function effectively even during an employee's unexpected absence due to disability.

The other types of insurance listed do not specifically address the need for hiring a replacement for a key employee. Liability insurance deals with the risks associated with potential lawsuits against a business, workers' compensation insurance provides benefits to employees who suffer job-related injuries or illnesses, and general business insurance encompasses a broad range of coverages related to the overall operation of a business but does not focus on supporting the hiring of replacements for disabled employees.