Business Insurance

Business Insurance

Keyman Insurance

If you’ve got any employees whose loss would leave a serious impact on the profitability of your business, you can take out a life insurance policy on those individuals.

If one of those key people then dies, your business will receive a lump sum payment to help you make the necessary changes to recover from their loss.

Business Expense Insurance

Business expense insurance can be used to cover your fixed business expenses if you are totally or partially disabled.

This may include expenses like rent and lease payments, insurances, and wages for non income-producing employees – allowing you to keep your business running while you’re away from work.

Partner Buy-Out Insurance

If you’re in a business partnership, life insurance can be used to fund what’s known as a ‘buy sell’ arrangement. Say, for example, you own a business 50/50 with someone else. You might set up a buy sell arrangement that specifies that if one of you dies, the other will buy the other out to take full ownership of the business.

To fund this arrangement, the business takes out life insurance policies for each of you – with the sums insured equivalent to half the value of the business. If one of you then dies, the proceeds of the insurance policy are paid to the beneficiaries of the deceased – effectively cashing out their half of the business.

Full ownership of the business is then passed onto the surviving partner, without them having to find a large sum of money at short notice.

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