The Role of Life Insurance in Business
If you have a business, there are a variety of forms of insurance you need that should be apparent. You want to protect your business from losses to your real estate, your inventory, furniture and other assets. You’ll also need protection from liability claims against you, your business or your employees. But what role would life insurance possibly play in a business. There are multiple situations.
Protecting Your Family in the Event of Your Death
If you are the sole-proprietor of your business, you are also likely its key employee. That means if you were to die, several events will follow. Your company loses its owner, its primary, key employee and your family probably loses a breadwinner. Sufficient, life insurance can provide your family with options when it comes to your business in the event of your death. If sufficient funds are provided, the company could potentially continue under ownership of your family with a new manager. They could sell the company or even close the company and still be financially secure. Business owners will want to carefully consider how much life insurance is sufficient for each option. Contacting our independent insurance agents is a terrific place to start.
If you have a partner or partners in your business, each probably plays a significant role either through knowledge, experience, skill or financial resources. Each is a critical component of the organization and the death of any partner could create a hardship on the future of the company. Mutually insuring members of the partnership with the others serving as beneficiaries can help insulate a company financially from such a loss. Funds can also serve as funding for a buyout of the deceased partner’s shares from his or her heirs.
Key Employee Insurance
You may have an employee that, while not a partner, carries significant weight in the future of your business. If your company were significantly impacted by the death of such an employee, you can protect your interest through a life insurance policy. It is generally a good idea to make this policy a part of the employee’s employment agreement.
If you are a business owner, you have a lot on your plate. There are competitors to keep an eye on, staffing issues to address and sales to maintain and increase. You also are responsible for protecting the company from insurable losses. We can help you accomplish that. Let’s discuss your business, your risks, and your goals. We can provide you with a comprehensive business insurance plan to help insure your future, and potentially save you money in the process. Contact our independent insurance agents to get started today.