The Orioles Have 11 Players on the IL: Why Every Business Needs Key-Person Insurance

The Baltimore Orioles defeated the Miami Marlins 9-7 on May 5, 2026, in a dramatic comeback at loanDepot Park — but the bigger story in Baltimore is that the Orioles are playing with 11 players on the injured list. Their closer, Ryan Helsley, is sidelined with elbow inflammation, forcing a patchwork bullpen to hold late-game leads. If a major-league franchise can be brought to its knees by losing key contributors to injury, the same vulnerability exists in every business. That is why key-person insurance exists — and why most small business owners don't have enough of it.

What Key-Person Insurance Actually Is

Key-person insurance is a life or disability policy that a business takes out on an employee whose loss — through death, serious illness, or long-term disability — would cause significant financial damage to the company. The business pays the premiums and is the named beneficiary. If the covered employee is unable to work, the business receives a tax-free payout to cover the financial impact.

In the Orioles' case, losing Ryan Helsley to elbow inflammation midway through a season doesn't trigger an insurance payout — professional sports teams use different financial mechanisms, including the collective bargaining framework. But for a business that relies heavily on one person's skills, relationships, or expertise, the financial disruption of an unexpected absence can be severe enough to threaten the company's survival.

The Real Cost of Losing a Key Employee

Consider what happens when a small law firm's lead partner has a stroke. Or when the head of sales for a 20-person company is diagnosed with a condition requiring months of treatment. Or when a specialized contractor — the only person in a firm who knows how to operate critical software — is involved in an accident and cannot return to work for a year.

The ripple effects are immediate: existing client relationships may fray, revenue pipelines stall, and hiring a replacement at short notice is both expensive and time-consuming. According to the U.S. Small Business Administration, the average cost of replacing a senior employee ranges from 50% to 200% of their annual salary, accounting for recruitment, training, and lost productivity.

Key-person insurance provides the capital to absorb these costs and buy time to rebuild. The payout can cover:

• Lost revenue directly attributable to the key person's absence
• Recruitment and onboarding costs for a replacement
• Loan repayment obligations if the key person is personally linked to business financing
• Buyout funding if the key person is a co-owner whose estate or family must be paid out

Who Qualifies as a "Key Person"?

This is where many business owners underestimate their exposure. The most common assumption is that only the CEO or founder needs coverage. In practice, key-person status belongs to anyone whose absence would materially disrupt operations.

In the Orioles' bullpen context, the team doesn't just miss Helsley — it misses the entire chain of pitchers whose roles depend on him anchoring the closer spot. The same cascading effect happens in businesses. The departure of a chief engineer affects every engineer below them. Losing a lead business developer affects every account they managed.

When evaluating who needs coverage, wealth management advisors typically ask three questions:

1. Would the company lose significant revenue in the first 12 months if this person left unexpectedly?
2. Would it take more than six months and significant expense to find and develop a replacement?
3. Does this person hold key client relationships, proprietary knowledge, or operational authority that cannot be easily transferred?

If the answer to any of these is yes, that person likely warrants key-person coverage.

How Much Coverage Is Enough?

Sizing a key-person policy is not an exact science, but several methods are commonly used. One approach is to estimate the person's contribution to annual revenue — typically 5 to 10 times the coverage amount. Another is to calculate the direct replacement cost, including headhunter fees, training time, and the revenue lost during transition.

For a business owner who is also the primary revenue generator, the coverage amount should typically reflect what it would cost to run the business for 12 to 18 months without that income, plus recruitment and transition costs.

A licensed wealth management advisor or financial planner can model these scenarios and recommend appropriate policy structures — whether term life, permanent life, or disability income insurance, depending on the risk being covered.

The Tax Treatment of Key-Person Policies

One common source of confusion: premiums paid for key-person life insurance are generally not tax-deductible for the business, according to the Internal Revenue Service. However, death benefits received by the business are typically tax-free under Internal Revenue Code Section 101. For disability policies, the tax treatment may differ depending on policy structure, making professional guidance important before purchasing.

The U.S. Small Business Administration recommends that all businesses assess their insurance needs at least annually, particularly when headcount, revenue, or ownership structure changes.

The Orioles' Lesson for Every Business Owner

The Orioles' roster situation illustrates a broader truth: even organizations with deep resources and professional management get caught short when multiple key contributors go down at once. Their 11-man injured list wasn't the result of poor planning — it reflects the inherent unpredictability of human health.

For small and mid-sized businesses, that unpredictability is amplified because the bench is shorter. A large company can absorb the loss of one executive; a 10-person company often cannot. The businesses that survive those moments are typically the ones that planned for them in advance.

Reviewing your key-person exposure now — before an injury or illness forces the issue — is one of the most cost-effective risk management steps any business owner can take.

At Expert Zoom, our wealth management advisors specialize in helping business owners identify coverage gaps and build financial resilience for exactly these situations. A conversation now can prevent a financial crisis later.

Financial Disclaimer: This article is for informational purposes only and does not constitute financial or insurance advice. Policy terms, tax treatment, and coverage needs vary by state and individual circumstance. Consult a licensed financial advisor or insurance professional before making decisions.