An Employee Dies, and the Company Collects the Insurance

Re:An Employee Dies, and the Company Collects the Insurance by dockd on Monday June 23, 2014 @06:17PM (#7935094)

The ethical dilemma is whether you should be able to buy insurance against events where you have no direct stake.

Should my employer be insured against my death? What about customers deaths? What about _potential_ customers deaths? What about events other than death?

Or to put it another way, in what way is insurance different than gambling?

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Re:An Employee Dies, and the Company Collects the Insurance by eli on Monday June 23, 2014 @06:28PM (#7935148)

In some or perhaps most of these cases this is probably more about managing finances than anything else, but a company has at least a theoretical direct stake in its employees. At the risk of sounding blunt, they incur the cost of having to replace them and the lost productivity in the mean time. If the employee is, say, the lead developer at a startup then having insurance on them might be the difference between the company being able to hire a replacement or having to fold.

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