How secure is your business?
Buy and Sell Insurance.
With all of life’s uncertainties and their tendencies to unfold when you least expect them to, you need to be prepared for the unforeseen.
Although this may seem impossible to do, there are a few ways you can mitigate your risk. One such option for business owners is buy and sell insurance. This goes a long way to protect the value of the business and the interests of the parties involved.
Here’s more on why it’s an integral part of running a company.
1. It outlines the true value of the business
Buy and sell agreements are important because they outline how the business is valued. This means that owners and their nominated dependants will be appropriately compensated should the agreement be terminated.
2. It ensures the protection of the business
With death or disability posing real threats to the running of a corporation, business owners need to ensure that their share of the business is rightfully passed onto the correct nominated party. Buy and sell cover will help provide a chance for other partners within the business to buy the deceased or disabled partner out if the need arises.
3. This policy also ensures that capital gains tax and estate duties don’t erode the value of the corporation.
Some buy and sell agreements also specify restrictions in terms of a divorce. Should a business owner terminate a marriage, they need to be able to prevent their former spouse from staking claim to their part of the business. This enables the rightful partners the opportunity to keep possession of the business at all times.
4. Less risk, more control
The financial control of a business is vital to ensure its survival. It’s what makes these kinds of policies and agreements of the utmost importance. To enter into a business arrangement without buy and sell agreements and the applicable cover is extremely risky and not advised.
If this sounds like a cover that you need, why not contact us today? Our team of friendly, experienced brokers are waiting to help you run your business with as little stress as possible.