If a key person in your company gets very sick, injured or dies unexpectedly, what happens to the company?
Will it mean a dramatic loss of revenue? Will the bank pull their loan? Will creditors shut you down? If you have a business partner, does that suddenly mean that you're now in business with their spouse? Or their kids?
As entrepreneurs, we understand the need to protect your company in the case of a key person going down -- and we have solutions in place that can help.
Key Person Insurance is built to help the company survive the storm if a key person -- an owner, a senior leader, or a key person with strong and specific industry knowledge dies. Your company pays for the insurance and is the beneficiary. So when that person dies, the policy pays out to your company to help cover bills, transition costs, even hiring costs. It can be a needed influx of cash when cash is most scarce.
In the case of a business partner, you can use these funds to "buy out" the estate -- you put into your Shareholder Agreement that this insurance will be used for that purpose. The estate gets a cash amount, the remaining partner(s) retain control of their company, and the company continues without having to fund a buyout.
We also offer Disability Insurance and Critical Illness Insurance that is company-owned. Similar to Key Person Insurance, this pays the company if someone is too sick or hurt to work to help the company weather the storm while the person recovers.
And like Key Person insurance, this can also be used with your Shareholder Agreement so that you have a clear course of action if a business partner becomes too sick or too injured to work in the long term. It can help fund their transition out of the business, and you can even use the insurance company's resources as a benchmark for disability in order to take the emotion out of the decision.
If your primary concern is the overhead that your business carries every day, we have Business Overhead Insurance specifically built to cover overhead if you're disabled as well!
Contact us today to discuss how we can help protect your business!