More about the plan
Business risk insurance can make sure your business stays afloat, when the unexpected happens.
For example: what if you, your business partner or another key person was suddenly unable to work? Just consider the financial implications.
How about an unexpected event that stops you trading for weeks, even months? You could need insurance to repay external debt or cover loss of profit, ongoing business overheads and even loss of personal income.
One of our specialists will talk to you and assess your (often highly complex) business risks. They’ll then give you a written Business Risk Protection Plan that:
• Outlines potential areas of risk faced by your business.
• States the outcomes you require.
• Recommends a specific combination of competitively priced insurance products that can help mitigate the risks.
Protect your business
The right insurance options, as recommended in your Business Risk Protection Plan, could provide the cash needed if something happens to you or your key staff. For example:
• Help repay business loans.
• Protect your assets and estate.
• Cover loss of revenue and income.
• Recruit a replacement for an incapacitated owner or employee.
• Buy out a deceased or seriously ill partner’s interest in the business.*
Find out more about the different kinds of insurance options available.
Three high risk areas
These are three of the most common areas where businesses are at risk:
1. Debt repayment.
Business loans are often secured by the assets and/or personal guarantees of the principals and their families. If you were to suffer a serious illness, or die, the cash flow needed to service any business loan could be affected. If creditors then called in the loan, your personal assets and those of your family might have to be sold to repay the debt.
2. Business continuity.
If you or your key employees are unable to work for an extended period of time due to illness or injury, the financial impact on your business could be substantial.
3. Ownership continuity.
If a director or shareholder dies, the estate usually has the right to demand immediate repayment of debts. In situations where there are two or more partners or co-shareholders in a business, significant problems may arise if one dies or suffers a major illness. The deceased or seriously ill partner's family could come into the business or nominate someone to look after their interests. You might have to sell assets or the business itself to pay out their interest. The departing shareholder or their family could end up retaining a share of the business that they don’t want and can’t sell.
Contact a Business Manager to arrange an obligation-free discussion, Business Risk Protection Plan, and quote.
* You should also get legal advice in relation to this, including the drawing up of a formal arrangement for one partner or co-shareholder to buy the interest of another, and to establish how that interest will be valued.