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Business Covers
Your business is going well - but then your Partner or a Key Person in your business dies or becomes very ill and unable to continue work for a while or forever. Your business becomes very unstable and at risk? Partnership Insurance and Key Person Insurance can take care of this to provide funds.
What does it do?
Partnership Insurance provides money to the "Other" Partner/s to provide funds to buy out a Partner should they no longer be able to continue in the business due to death, injury, or illness. A Key Person could be a Director, Office Manager, Salesperson, a Technical person or any employee the business depends on. Should they suddenly not be able to work due to death, injury, or illness, Key Person cover will provide funds to the Business to offset loss and costs.
Why have it?
Many Business Owners and Business Partners have asked the question "Why did we NOT have these insurances in place?" Many businesses operate on a financial knife edge. The sudden exit of a Partner or Key Person due to death or sickness can cause huge financial problems in a business: Loss of clients, Loss of profit, Loss of bank confidence, Loss of business stability, Loss of employees. These two business insurance covers can bring business stability in a very difficult time - and the good news is, they are not that expensive.
Options
- Cover for Death Only
- Cover for Death plus Trauma conditions
- Add Total and Permanent Disability cover
- Some businesses also provide Income Protection to employees, which can then free up funds to pay for interim staff.
- Guaranteed increases of cover for Partners as the business value increases without the need for more medicals.
- Premiums not payable during claim periods
Premiums
Premiums for Partnership Insurance can get complicated and advice from an Accountant is often required, however in most cases premiums are paid from personal income and not treated as a business cost. Key Person insurance is usually treated as a business expense, but once again see the Accountant. Partnership and Key Person Insurance covers are often surprisingly not as expensive as business owners and managers expect. It is considered wise to regularly review to make sure cover is in line with changing Business and Key Person Value.