Motion Picture Theater Management (1927)

230 MOTION PICTURE THEATER MANAGEMENT however, that this insurance is expensive, and should be employed under abnormal conditions only. EXECUTIVES Life Insurance for Executives has become a general practice, and many large organizations insure important executives for the benefit of the operating company. This compensates the company for the loss of a man who might be a dominant factor in the further development of the enterprise, and whose replacement would entail loss of time, prestige or services too valuable to compute in dollars. Most important operations center around some individual of directing ability; and this type of insurance is a means of offsetting the financial loss that would be incurred by that executive's death. Many large corporations protect their stockholders by carrying insurance on the lives of the principal officers. This is considered good practice amongst leading industrial organizations, because it increases confidence among investors. GROUP LIFE Group Life Insurance has been adopted by many large organizations, and is of fine value in helping to build morale amongst employees. It is an expression of appreciation and good will and an indication that the welfare of the employee is being considered by the management. This brings about a closer relationship, and a greater interest on the part of the employees. The cost of group insurance is very small, and helps to reduce the large turnover in an organization, by holding an increased percentage for long periods. personal hazards Huge organizations have recognized their obligations in guarding faithful employees against accident and sickness, so far as possible. Many have covered their employees with group life insurance. Others have encouraged employees to form mutual benefit associations which provide cash payments for limited periods of sickness. A few large organizations have bonus plans through which the corporation adds a certain per