EVERY BUSINESS NEEDS TO PROTECT ITSELF. THERE ARE A HOST OF STRATEGIC APPLICATIONS TO PROTECT YOUR BUSINESS.
A key person can be anyone directly associated with the business whose loss will cause financial strain to the business.
The type of risks that can be covered by key person protection:
- The death of a key person
- Their total and permanent disablement of a key person
- Their suffering of a trauma event such as a heart attack, stroke, cancer.
The two main categories of loss for which key person protection can provide compensation for:
1. REVENUE PURPOSE
This protects the business against lost revenue and increased costs in the event of the loss of a person who makes a significant contribution towards the profitability of the business such as recruiting and training costs and fall in sales revenue or profits.
2. CAPITAL PURPOSE
This protects the business through the provision of capital in the event of the loss of a person who makes a significant contribution towards the capital value of the business such as pay off business loans, protect credit rating and offset loss of goodwill.
If you’re a business owner and in a partnership, one thing you may not have given thought about is implications of a partner’s untimely death or disability. Should this happen, it can cause unforeseen problems that can be avoided via a well thought out succession plan.
Partnership Protection offers the following benefits via a buy/sell protection policy:
- The remaining owners having to sell the business or raise capital to pay out the departing owner or their estate.
- Guarantees the orderly, equitable and certain transfer of ownership.
- Maintains control of the business for the future.
- Protects their entitlement to profits and the value of the business.
- Ensures the existing owners receive fair value for their interest.
business expense protection
Business Expenses insurance means that the fixed expenses of your business will still be paid even if you cannot work due to injury or sickness.
This means that the business’ bills can continue to be paid –and the business can stay afloat -without the owner having to dip into their savings or increase their debt while they are recovering.