Objective of Business Insurance:
To help business owners and businesses prepare for the unexpected.
What does Business Insurance do?
A key person is someone who is critical to the financial wellbeing of your business through their continued association. Key people play an important part in generating the revenue for the business and/or obtaining business loans.
The death or disability of a key person could have a significant impact on the sales of a business and/or the ability of a business to continue to repay its loans.
Some of the areas to consider
- Protecting your business revenue against the permanent loss of a key person
- Protecting your business revenue against temporary loss of a key person
- The Cost and time frame involved in replacing the key person
- Protecting your business assets
- Ensuring the business can continue to repay its loan
- Ensuring business can continue to pay its fixed expenses
Protection for transfers of ownership
What’s a Buy-Sell agreement?
A document which commonly sets out the wishes of the business owners should one of them die, become incapacitated or trigger any one of the range of specified events. It can be drafted in a number of ways to suit your circumstances, and those of your business. For example, if one of your business partner dis, a Buy-Sell agreement can be structured to give you the legal right to buy their share of the business, for a specified amount. The agreement could also give you (or your beneficiaries) right to sell your share of the business to the other owner(s), should one of these events happen to you. The purchase can be funded by life insurance policies, taken out on the lives of each owner.
The ownership of the life insurance policy in a Buy-Sell agreement can be owned in a number of ways
- Cross Ownership
- Company Ownership
- Trust Ownership
- Superannuation Ownership