Business Insurance: Questions to ask
Insurance plays a crucial role in mitigating risks and providing financial protection when unforeseen circumstances arise.
By asking the right questions you can gain a deeper understanding of how insurance policies can protect your business in times of adversity.
>> Key Person Insurance
Key Person Insurance is designed to protect your business in the event of a key person’s passing or serious illness
When discussing with your our SBA Insurance Adviser, consider asking:
(1) How can I determine who qualifies as a key person within my business?
(2) What factors should be considered when determining the appropriate level of coverage for a key person?
(3) What happens to the insurance payout and how can it be utilised to mitigate potential financial setbacks?
>> Buy-Sell Insurance
Buy-sell insurance provides a lump sum payment if a business owner is forced to exit the business due to death or total permanent disability.
When discussing with our SBA Insurance Adviser consider asking:
(1) How can buy-sell insurance help ensure a smooth transition of ownership in the event of an unforeseen exit?
(2) What valuation methods are used to determine the value of the business in case of a triggering event?
(3) Are there any specific legal or tax implications I should be aware of when implementing buy-sell insurance?
>> Business Expenses Insurance
Buy-expenses insurance reimburses certain business expenses incurred while you are injured or unable to work.
When discussing with our SBA Insurance Adviser consider asking:
(1) What type of business expenses can be covered by business expense insurance?
(2) How can I determine the appropriate level of coverage to ensure my business can continue operating during my absence?
(3) What are the waiting periods and benefit periods associated with business expenses insurance?
Let’s chat if you want to discuss how insurance policies can protect your business in times of adversity. Insurance is an investment in the future of your business, providing you with peace of mind and ability to navigate unforeseen circumstances with confidence.
Richard Jones, Adviser, SBA Insurance
Richard assists Collins SBA clients understand and navigate the unexpected and the unplanned. Common triggers for reviewing insurance plans include babies, an increase or decrease in income, or business revenue, purchasing a property or new business, a change in shareholder agreements, and change in your liabilities, marital status or health.
Richard makes the complex easy to understand and is readily available to answer questions. The team at Collins SBA love working with Richard and the opportunity to learn directly from him.
Bachelor of Commerce (B.com.), Accounting and Finance, Advanced Diploma Financial Services.
