Business Succession Insurance and Key Person cover
People are the essence of any business. Without people, no company can exist. Thus, making sure that you have put in place appropriate risk management and planning to ensure that if a key person is seriously injured, becomes gravely sick or worse dies, there is an orderly plan to ensure the family of the deceased is financially protected and paid their fair share, and that the other owners or partners remaining in the business can manage the transition financially is vitally important.
A buy/sell agreement will set out the triggers and requirements for how the interests of an exiting business owner are transferred. We see that there are four major reasons for exiting a business, these being, Death, Disability, Divorce or Departure. Two of these are voluntary, whilst two are not.
For the sake of the business, it’s continuity, and the wellbeing of other participants, having a well thought out business succession plan is integral.
Various issues need to be considered, such as how any insurance policies are arranged and in what names, ownership structures, legal agreements, values of the business for the buy/sell agreement, how shares of the business are determined, and the tax implications of both premiums paid, and claim settlements.
We are more than happy to arrange for business owners a thorough review of your buy/sell insurance needs through our ASIC Licensed personal life and income protection expert broking partners.
Contact us today by completing our contact details form or call us on 07 3139 3900. We look forward to being of assistance.