What would happen if a Director, CEO or key person in your business became disabled short or long term, had a serious illness like cancer, became a paraplegic or passed away? Would the business be able to continue?
Whether your business loses a major shareholder, Director, CEO, an extremely competent manager, or another relevant person, business insurance is a way to ensure that the business can survive after a tragedy. It’s vital to come up with a tailor-made solution that anticipates the various situations that could arise.
The main types of business insurance include:
Loss of Revenue
If the life insured is no longer able to work due to illness or injury, you can receive monthly income compensation to provide a cash injection into the business.
If the life insured is no longer able to work due to illness or injury, this can help cover the fixed overheads of the business, for example a long-term lease
If the life insured, generally a director / business owner suffers from serious illness, is permanently disabled or dies, you can receive a lump sum that allows you to repay outstanding debts.
If your business loses a shareholder due to serious illness, death or long-term disability the remaining shareholders can receive a lump sum to buy out the other person’s shares in conjunction with their buy-sell agreement.
Key person insurance
If your business loses a key person due to illness or death or disability, you can receive a monthly payment or lump sum that helps you with the often-burdensome costs involved e.g. loss of profit, training expenses, hiring a replacement
Business insurances are complicated and need to be assessed in line with your other documentation to ensure they work correctly at claim time, A One50 adviser can help you come up with a unique insurance plan that will give you comprehensive coverage and peace of mind. Contact us today to find out more.