You worked hard for your business –
Are you going to let it go down the drain?
Whether you’re a sole trader, a partnership or a small/medium business owner, your business is your livelihood. You’ve worked hard to start and establish that business; you invested long hours of work and precious energy. You most likely put important parts of your life on hold while you nurtured your business to success. You don’t want to see that effort go to waste, right?
Most small business owners insure their premises, employees and equipment while failing to protect their own income. One of the most important questions a small business owner can ask is: can I support my family if I’m injured and/or need to take several months off work? Or, what happens if my key partner is injured or dies?
Jennings Financial Service can help you protect everything you’ve worked for. By understanding your business, your family situation and your long-term goals, they’ll develop a strategy to minimise financial loss regardless of the circumstances. With Business Protection insurance you can cover the key person in your business for a combination of any of the following:
- Life insurance
- Total and Permanent Disability insurance
- Trauma insurance
- Income Protection insurance
Most small business owners do not realise how important protecting the business is, and as a result structure their policy incorrectly. Consider what would happen to a company or business were any of the following to occur:
- A key income producing Executive Director dies or becomes disabled;
- A business loan guarantor dies;
- A key employee (in a small business) suddenly suffers a traumatic event (such as cancer) and is unable to work or has to take 6 months off work;
- A joint business partner dies & their company shares are passed onto their estate. Your former business partner’s partner now owns part of the business and may possibly become a decision maker.
Jennings Financial Services can help you find the appropriate business protection insurance policy to protect the business during these events. There are three main types of Business Protection insurance:
1. Loss of Revenue: This covers the business if you lose a key employee or director for either an extended period of time, or indefinitely. A Business Protection insurance policy provides compensation which allows the business to use the proceeds to cover hiring a replacement.
2. Capital Protection: Business Protection insurance also covers key persons who are guarantors on business loans or credit facilities. If this person dies or experiences an extended disability, the bank may call on the facility to be paid back, or it may no longer be made available.
3. Buy Sell Insurance: Buy sell insurance covers shares in the business and/or partnership interests. There are many ways in which this works; generally it provides means by which business interests can be transferred between owners on death, disablement or critical illness.
Don’t take a risk with your business and livelihood. Let Jennings Financial Services help you ensure your business and its principals are fully protected in the event of a serious illness or accident.
