Business Assurance
Key Person Insurance
What will happen to your business if a key person dies or becomes disabled and is no longer able to work? Consider the following:
- The loss of that person’s expertise
- The cost of recruiting and training a suitable replacement
- The loss of clients or good working relationships that depended on that person’s ability or personality
- The delay or cancellation of any projects that the person was working on
- Recall of any existing loans guaranteed by the key person
Solution
Key person insurance protects a business against financial loss when a valuable employee dies or cannot work anymore because of a disability or severe illness. The insurance provides the financing necessary to ensure the business continues until a suitable person can be found.
Contingent Liability
What will happen to your business if the person that stands surety for the business dies or cannot work anymore. Consider the following:
- Is there enough liquidity to cover outstanding debt?
- The impact on the business if there is no insurance to cover the debt.
Solution
Contingent liability insurance is a policy taken out by a business on the life of an employee or director who stands surety for the debts of the business. This is to ensure that there is enough capital to settle the debt in the event of a disability or death.
Buy & Sell Agreement
What will happen to the co-owners shares in your business if he/she cannot work or even worse, dies?
- Is there enough capital to buy the shares out of the deceased estate of the co-owner?
- If there is no cover the shares will devolve upon the beneficiaries of the co-owners will.
Solution
Buy and Sell insurance allows co-owners to provide cover on each other’s lives so they can buy the shares of a co-owner who has passed away or is medically unfit to work. We structure this so that all tax and insurance regulations and laws are satisfied.
Business Overhead Expense
What will happen to your business if due to a disability you cannot work – even if it is only for a short period of time?
- Would you be able to cover overhead expenses if you as the owner is not able to work anymore?
Solution
Business overhead expenses insurance will for a limited period, provide monthly payments in the event that the insured cannot work because of an illness or disability.