Protecting Your Business
How would the business manage if a key member of your team – or you – were unable to work or worse away?
What plans do you have in place to keep the ‘show on the road’
could remaining business partners manage the work load?
Would they be able to buy out the shares of the remaining spouse?
Where would they get the money from and how easily would they get the money?
How would your suppliers react?
How would the bank react?
How would your customers react?
Many businesses have insurance in place to protect the value of their stock, the buildings and their motor vehicles. What about the people that work in the business – those that have key relationships with suppliers, customers and years of knowledge. Allsure Financial Solutions Limited can help you develop a plan to protect your business.
Debt Protection
If a business owner suffers a severe disability or passes prematurely, the proceeds from a Business Insurance claim can provide you with the cash to repay all or a significant part of the business debt.
For example, as a business you have borrowed $1,000,000 to expand the distribution of your services, one of the partners pass prematurely or becomes disabled, the remaining partners will be left with all the debt. Appropriate levels of Business Insurance with the correct ownership structure protects the business, the business owners, and their families.
Shareholder Protection
If a business partner passes or suffers serious disablement, Business Insurance can provide the funds for the remaining business partners to buy the shares from their partner’s surviving spouse or their estate.
How will this work?
It is essential that a buy/sell agreement is in place that sets the rules as to what is to happen if one of the partners is no longer actively contributing to the business. We would recommend that you seek legal advice when setting up a buy/sell agreement.
Who owns the policies?
Generally, the business partners will own the policy on their business partners life and vice versa. It may be prudent to have an independent trustee own the policies to ensure that the buy/sell agreement is honoured at the time a Business Insurance claim is paid.
Key Person Insurance
Who are the key people in your business?
How do you value the key person’s contribution to the business?
If the key person could no longer work in the business, what would the impact be on your business cash flow?
Allsure Financial Solutions Limited can assist you in determining what revenue a key person brings to the business and what other costs would be associated with the loss of that key person – it may be recruitment costs – it may be the time it takes to get a new person up and running. A Business Insurance injection of cash at this time can cover these costs and reassure customers and creditors
I have had the pleasure of dealing with Sean and Elaine for more than five years now with a number of different insurance products - and more recently Kiwisaver. They have made the whole insurance application/claims processes so much (!!) easier than dealing direct with insurance companies and I thoroughly recommend Allsure to anyone wanting an experienced, friendly company to handle their insurance needs.