Business Owner & Key Person Protection

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.

We offer these types of insurance for business owners:

• Disability Income Insurance
• Overhead Business Expense Insurance
• Key Person Insurance
• Employer Income Protection
• 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.

Disability Income Insurance

It's essential for business owners to protect their own income first through disability insurance. A personal or group policy can provide protection. Read about disability income insurance.

Once your personal income security is insured, it's appropriate to look at the other options to insure business income for the organization. Also see the employer income protection option.

Overhead Business Expense Insurance

Overhead insurance goes into effect when a business owner cannot work due to illness or injury. It is a type of disability insurance, but instead of replacing some of the owner's income, benefits help cover continuing operating expenses until the owner returns to work or other arrangements are made. It is the least expensive form of disability insurance, and is generally time-limited (12-18 months).

It is most appropriate for businesses where the owner is actively involved in generating revenues, such as physician offices, attorneys, financial professionals, architects and designers.

Overhead insurance is not available for home-based offices. Personal long-term disability insurance would be appropriate.

Request a quote or more information using our online form.

Key Person Insurance

Key person insurance is a life policy that replaces business income at the death of a person critical to the success of the business. It provides cash flow to protect the financial stability of the company at a time when banks are reluctant to lend and may even call in loans.

Usually key person insurance applies to the owner and key executives. When properly designed, the policy will replace lost revenue and provide funds to hire an interim replacement.

Usually purchased as term-life policies, key person insurance is surprisingly affordable for the amount of coverage. The insured must medically qualify.

Find out more about key person insurance.

Employer Income Protection

This unique disability product protects both key employee income and business income insurance. It is available from Standard Insurance.

The employee receives disability insurance for up to 60% of salary to age 65, while the company receives up to 24 months of the same amount to help hire a temporary or permanent replacement.

Contact us for more information.

Buy-Sell Agreements

Buy-sell agreements provide a succession plan in the event that a owner/partner or shareholder dies, becomes disabled, retires or leaves the company. In the case of death of an owner, funds for the buyout often come from life insurance policies written specifically for this purpose. Another kind of disability insurance can be used in case of permanent disability. This ensures that funds will be available and the business can remain operational.

Contact us for more information.