Most small businesses owners
are actively involved in their
companies. It's important to
have a financial plan in the
event that an owner becomes
disabled or dies, to ensure
that choices are available
regarding the future of the
business.
As benefits administrators,
you are in a unique position
to initiate conversations on
important insurance issues.
We hope you'll find this
information useful.
This month we describe these
types of business insurance:
-
Overhead
Business Expense Insurance
- Key Person Insurance
- Buy-Sell Agreements
Although these are not
employee benefits, they are an
important part of a business
plan, and benefit all the
employees who rely on the
company for steady employment.
They are generally quite
affordable, but must be
purchased when the proposed
insured can medically qualify.
The time to buy is when things
are good! We've included
example rates for a benchmark.
Please contact us if you would
like more information about
these types of coverage.
Cecilia Paul, Account
Manager
|
Overhead
insurance goes into effect when
a business owner cannot work due
to illness or injury for an
extended period of time.
Overhead
insurance is not available
for home-based offices.
Personal long-term
disability insurance would
be appropriate.
Key
person insurance is a life policy
that replaces business income at
the death of a person critical to
the success of the business.
Usually
purchased as term-life policies,
key person insurance is
surprisingly affordable for the
amount of coverage. The insured
must medically qualify.
