As a business owner, you have probably gone to great lengths to make sure that your company is protected through all the basics. Business liability, property, cyber, workers’ compensation, etc. are important for your business, but you might be missing other important coverages. Having a business succession plan funded with life insurance that is unique to your business and protection against financial loss of a key employee should their tragic death happen is an important investment into your business.
Succession plan, buy-sell agreement, and employee benefit plan and protections are the 3 essentials to business succession plans.
A business succession plan guards the company against the death of the owner. The company will have an understandable plan so when dealing with the mourned death, the workers don’t have to scramble to decipher power.
Properly funded and well-designed succession plan with life insurance addresses the following:
- Lining up the next generation of leadership
- A properly structured and funded buy-sell agreement, which leaves no ambiguity about future ownership of the company
- Protections and benefits for employees
A succession plan will overall help retain a strong workforce and create a smooth transition. It is vital that there is a smooth transition because customers are dependent on your business, and it could result in financial loss. Also, it puts the deceased owner in control of whose hands their business goes to, which is important because you wouldn’t want your business falling under the wrong hands. In addition, it establishes the price and terms of the sale and creates a market for a deceased owner’s share of business.
We all have a couple employees that are always working extra hard, and everyone can go to them for their problems. Key Employees are valued in every business and without them your business could suffer from financial hardships. Obtaining a Life Insurance policy for that employee that your business pays for and is the owner of that policy will protect you from unexpected losses. This type of protection gives your business time to train and hire replacements with financial breathing room.
Your business success represents countless hours of planning and hard work. Chances are, you want to protect it and preserve its legacy. Gannon Associates Insurance has the resources that can help promote growth, success, and longevity of your business. Call DGK Insurance at 570-945-3031!