The interests of your business need to be cared for and as a business owner, you are faced with the responsibility of deciding what happens to the company upon your retirement or death. Do you sell, leave it to a partner, or perhaps leave it to your children or another family member? Business Insurance can assist you in dividing the assets of your company equally, so that all those involved receive an equal value of the company whether it’s a share in the company or a cash payment in lieu of.
As a business owner, you should have a Buy-Sell Agreement in place so that in the event of your death you can be confident that the interests of your business are protected and your partners and/or family are not left disputing the sale of the company. A Buy-Sell Agreement establishes a guaranteed purchaser, sale and price of the company. It also guarantees the capital to fund the agreement. A Life Insurance policy is just one way to guarantee that the resources will be available to fund the Buy-Sell Agreement in the event of a death.
The success of a business can often depend on the services of key owners and employees. The loss of a key person due to death will likely result in a loss of income to the company, at least in the short term. Your company may incur additional expenses resulting from recruiting, hiring, and training a replacement. Key Person Insurance will provide your company with the liquidity that many be required to keep your company afloat, ensuring that your daily operation and your clients are not impacted.
Key Person Insurance is also available in the form of Disability Insurance. As the business will be the owner and beneficiary of the policy, the company could use the monthly cash benefit as working capital, for use in recruiting, hiring and training a replacement, debt repayment etc., while the key person is unable to work.
As an owner, you have worked hard to grow your business. What would happen if you, a business partner or one of your key employees was unable to work because of an unforeseen illness or injury? Would your bottom line be impacted in either the short term or long term while this employee was away?
Whether you need to recruit, hire and train a replacement, or pay off debts, there are insurance solutions available that can protect your company so you can continue to operate business as usual.