Any business that does not plan for every contingency is doomed to suffer when disaster strikes. That is why it is critically important to talk to one of our business experts about buy/sell insurance for your company. With this type of insurance in place, your company will be able to move forward if anything should happen to an owner or partner.
It Starts Off As An Agreement
A buy/sell agreement is an understanding between the owners or partners in a company that determines what will happen if one or more of the owners or partners passes away or becomes disabled. It provides for the financial well-being of the owner’s family, and it provides the company with the guidance it needs to move forward after such an event.
After years of working hard to put together your business, the last thing you want to do is have your business become a financial burden if something were to happen to you. With a buy/sell agreement, it will be known exactly what you want done with the business in the event of a crisis, and it will also outline the succession plans to help keep the company in your family. Without a buy/sell agreement, your family could be facing catastrophic financial losses and your business could either close or have its fate decided by the courts.
It Is Funded By Insurance
It is one thing to put together a plan for taking care of your business if something were to happen to you, but it is quite another thing to actually put together the funds to make those plans happen. When a crisis like this occurs, the company’s funds cannot be used for the family’s personal needs. Not only that, but the funds required to finance a succession in the wake of a crisis usually exceed what the company can cover. That is why buy/sell agreements are funded by insurance policies set up by one of our professionals.
In the event that you were to pass away unexpectedly, a life insurance policy will kick in that will provide your family with the financial resources it needs to pay all associated costs and fund the ongoing business operations while the transition to a new owner from within the family takes place. Your family and business will be protected from any possible financial loss on the business side, and your family will be able to take care of its business issues with peace of mind.
A crippling injury or disease can also cause you and your family to have to make decisions regarding your interest in the company. A good disability insurance policy will help you to cover your own costs as you make the transition out of the company. A long-term disability policy can attend to your income needs and medical costs and relieve financial pressure from your family.
Business Liability Insurance
Business liability insurance can protect your company from lawsuits that could arise if something were to happen to you, and it can also allow the company to continue if you should become disabled. When you are unable to work and need to take care of your health needs and you have business partners, your company will need to buy out your shares in the company to keep going. Business liability insurance allows that to happen and allows the company to continue without you.
No one wants to prepare for their own demise or disabling injury, but it can happen and your business needs to be ready if it does. Without a buy/sell agreement in place that is funded by good insurance, your company and family could be facing significant financial issues if something were to happen to you. Contact one of our professionals today and we will show you how to protect your loved ones and your business from financial disaster.