Losing a key employee could disrupt sales, hinder production and potentially create credit issues.
Operating a business requires you to manage risks to preserve assets and prevent losses. You’ve ensured that you have appropriate commercial liability insurance and perhaps directors and officers coverage or employment practices protections.
Nevertheless, the biggest risk to your business could be the loss of you or other company leaders.
LEADERS ARE KEY
When evaluating risks, have you considered the impact of an unexpected death of an owner or one of your key employees – not just emotionally, but financially?
The cost of an unfunded buy-sell agreement could be just as devastating to your balance sheet as an uncovered liability claim. A properly designed life insurance policy can play a critical role in protecting the financial future of your business.
Losing a key employee could disrupt sales, hinder production and potentially create credit issues. Those costs might be difficult to overcome without adequate coverage. The employees you identify as needing liability coverage may be the same key leaders for whom you need life insurance. Purchasing life insurance can fund a business continuation plan, keeping your business financially attractive to those who might want to buy out a deceased person’s interest in your company.
PRIVATE OR PUBLIC
Whether your business is privately held by a few owners or has many shareholders with a complex ownership and management structure, both management liability and life insurance provide critical protection for the financial position of your organization.
A lack of coverage ultimately can impact your business’s ability to obtain credit or even continue operations. More importantly, adequate coverage protects your personal assets and the future value and security of your business.
With the help of an independent insurance professional, you can quickly tailor a solution to your specific needs.
Need to review your plans? Call us at Anders, Ireland & Marshall and talk with one of our Account Executives to review your options - 919-755-1401
Original article https://blog.cinfin.com/2020/11/17/business-life-insurance-part-of-risk-management/