Business Insurance
Owning your own business can be a lot of hard work but it can be extremely rewarding both emotionally and financially. If you are relying on property insurance to protect it, the company assets may be protected but not the business itself. One disaster/misfortune can potentially wipe out all your profits and even destroy your business. The costs associated with a business insurance policy are small when compared with the immense risks that you’ll protect against.
Protect your business from unforeseen losses with the appropriate type of insurance.
Business Life Insurance
Life insurance is a cost-effective way to protect your interests as a business owner and provides the needed cash to ensure the continued operation of the business itself. It provides a one-time, tax-free payout for your business upon your death. Life insurance is often used as a funding vehicle for buy-sell agreements between business partners. It is also a useful tool in business succession and estate planning. As a business owner your life insurance policy can be personally or corporately owned, but there are tax advantages to business-owned policy. Speak to both your accountant and your insurance advisor to find out how life insurance will fit your business needs.
Insurance To Address A Business Owner’s Inability To Work:
Business Overhead Expense
(BOE) Insurance
Disability business overhead expense insurance is usually used for small business owners. It covers certain overhead costs (rent, hydro, income and property taxes, vehicle/equipment leases, employee salaries, loan interests and professional fees) while you as an owner are unable to work. It helps keep the business afloat for certain period of time in hopes that you as the disabled owner recover and return to work.
Business Loan Protection Disability Insurance
Business loan protection disability insurance is appropriate for relatively small businesses that meet specific qualifications. Because BOE insurance only covers the interest portion of a business loan, this will potentially cover entire payments while you, the business owner, is disabled. Payments are made in installments or lump sum.
Disability Buy Out Insurance
Business owners’ buy-sell agreements can address issues other than death of a partner. Things such as the long term disability or critical illness of a partner may also trigger a sale of that partner’s ownership of the business. Disability buy-out insurance is often used to provide guaranteed funding for these types of agreements.
Key Person Insurance
Key person insurance is a company owned insurance used to address the loss of a key employee (who contributes greatly to the business or is integral to the operation of the business and who’s services would be difficult and expensive to replace). The business pays the insurance premiums and is the beneficiary of the policy. These benefits would be used to offset your losses and the financial impact of the loss of your key employee such as reduced business profits and to pay debts and expenses to keep your business going while you find and train a suitable replacement.
Business/Group Health Insurance Plans
Employer-sponsored health insurance is one benefit employees truly value. Offering the right benefit plan is an excellent tool to make you more competitive in attracting and retaining the best employees.
These plans can be structured in numerous ways and vary from health spending accounts to employer-sponsored group plans, which typically include life coverage, extended healthcare, vison and prescription drug coverage, dental benefits and disability income. As a business, these premiums may be tax deductible as a business expense.
Speak with your insurance advisor to discuss the solutions that would best suit your company needs.