Owning a business is one of the most rewarding experiences in life and with that it carries a lot of risk and responsibilities. There are many threats that stretch beyond basic property and casualty protections that business owners should consider.
For example, a company with multiple owners should consider implementing a Buy-Sell Agreement to effectively retain a deceased business partners ownership in exchange for an agreed valuation paid to his spouse or beneficiary. Ask yourself, do you want to end up partners with your business partners spouse? If your answer is no, a Buy Sell Agreement might help.
Business owners should also consider the loss of a key employee and how this may affect daily business operations and profits, let alone the costs involved to replace and train a employee. If you have any doubt that you might find it difficult to replace these individuals, a Key Person strategy might help.
A life insurance policy can also be put in place as an Executive Bonus, generally paid for by the employer to provide coverage at no cost to the employee. This is typically a great tool to retain employees and stay competitive among other employers. If you’re concerned about employee retention, or how your business may be affected if an employee quits to go work for another firm, an executive bonus plan may help.
Because of the many variables involved with these business life insurance strategies, we recommend you give us a call or use our contact form below so we can properly evaluate your business to determine which coverage, if any, would be suitable for your needs.