Business Insurance Advice

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Business Insurance Advice

We help small- to medium-sized businesses with succession planning in order to protect key directors/employees (Keyman Insurance) and provide a cost-effective funding solution in the event of the unexpected death or disablement of one of the key directors (Buy/Sell Insurance).

The problem

Without a business succession plan, your family and business associates could be exposed to unnecessary financial risk.
If the unthinkable happens, ask yourself these five questions:
1. Would any ownership succession be orderly, equitable and funded quickly?
2. Would you or your family receive adequate payment for the transfer of your interest in the business?
3. Would the valuation of your business be maintained?
4. Would you have sufficient financial resources to protect your income and lifestyle?
5. Would you have to use personal assets, such as your home, to provide security to borrow money to fund an exiting business partner?

The solution

Business insurance can provide owners with enough cash to:
• Fund a Buy/Sell agreement documenting an agreed price.
• Ensure the exiting owner and/or family receive fair value for their interest.
• Guarantee the orderly, equitable and certain transfer of ownership.
• Maintain control of the business.
It’s cost effective because it can provide the right amount of money, for the right person, at the right time at only a fraction of the cost of the alternative.

The alternative

Borrowing the cash to fund the purchase price is an option many businesses could consider, but lenders may not be prepared to extend credit, and you may not want to, or be able to, provide the security for additional lending.

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