Business Insurance advice involves providing business owners with protection against the risks they run simply by being in business. The death, permanent disability or critical illness of a business owner, or key person, can cause serious disruption to a business and jeopardise its financial stability.
Our process involves an in-depth analysis, which will help to identify the risk factors specific to your business. Once the identification and analysis process is complete, we can then consider the level of risk that you are willing to retain versus what should be transferred via insurance.
Rede Advisers can provide business owners with any requirement you may have with regards to the following:
What sort of insurance do you need?
Loss of a Key Person
The death, disability or critical illness of a business owner or key employee can cause serious disruption to business stability. Key people may include; Business Founder, Key Directors, Sales Manager, Financial Controller, Research and Development Specialists.
What happens if a business owner dies or is disabled and is no longer able to work in the business? Does the business survive? Lenders can impose credit restrictions and goodwill can be lost.
Who pays off or funds business debt if an owner or key person is removed through death or disability?
Shareholder/Partner and Buy/Sell Agreements
A Buy/Sell Agreement is designed to protect shareholders and partners to enable continuity of business ownership. It is commonly used in small to medium sized businesses where shareholders want control over ownership issues.
The agreement sets out the events that could trigger the Buy/Sell (death, disablement, critical illness and retirement), the time frames involved in share transfer/sale and a process for share valuation. A Buy/Sell Agreement aims to have insurance proceeds made available at the correct time for the remaining shareholders to trigger a compulsory purchase of shares. This protects both the remaining shareholders business assets and those of the exiting shareholder.
A plan to enable a business owner to make an orderly sale or exit whilst maximising asset values and providing financial certainty. It also addresses inter-generational family asset transfers. It can involve the use of Family Trusts, an orderly gifting programme and investment diversification.
Employee benefits are designed to retain valuable staff and reward long-term service and loyalty. An attractive employee benefit can also help to attract skilled staff. An example of this is a company group health plan.
Insurance is not just set-and-forget
A business’s needs and circumstances and therefore risk changes over time. Therefore, it is important that business insurance protection is reviewed on an ongoing basis. You may be paying for cover that is no longer required or there may be new areas where protection is needed. If you would like to discuss how business insurance covers can protect your business or review any covers you already have in place, contact Guy Buchanan today.