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Business Insurance

Business Insurance

Every business take some risks, but taking risks or failing to protect your business does not make good business sense. Many businesses have been built around the strengths and skills of a few individuals whose capital, energy, knowledge, or experience makes them a valuable asset to the organization.

Could your business survive if one of the partners dies or becomes disabled?

Could your business survive if the key employee, whose knowledge, work and overall contribution is considered uniquely valuable to the company, dies?

Could your business survive if one or more employees got injured?

Would you have sufficient cash on hand to deal with any business emergency that could arise?

In many cases, the answers to these and other questions about risk is "no".

The right type of business insurance can provide peace of mind in your business life.

Partnership or Insurance Shareholder or Buy/Sell Insurance - If your business partner passes away the beneficiaries or the estate of the deceased may have no interest in continuing to be part of the business, and may demand that the full value owing to them be paid immediately. In this situation, the remaining owner or owners would be under pressure to settle this debt either from company resources, their own personal assets, or by borrowing from a financial institution. Each of these situations presents problems that add to an already difficult situation. Another possibility is having the deceased's family wanting to take an active role in the company which can be harmful for the company. Partnership insurance will allow you to purchase shares of the deceased and continue running the business.

Key person insurance or key man insurance - If your business relies on certain key people to help you run your business, you can take out key person insurance. This will protect your business from losses related to the extended period of time it takes to find a suitable replacement or provide temporary personnel to finance the recruitment and training of a replacement in the event of the death of a key person.

The employer would be the owner and beneficiary of the policy. The key employee would be the life insured, but would receive no benefit from the existence of the policy. Under the “Income Tax Act” no deduction can be claimed by the employer for premiums paid under a key person policy. However, any death benefit proceeds would be received tax free by the employer and would provide the liquidity needed to hire and train new skilled individuals and provide cash flow through a period of sales decline.

Overhead Insurance - is designed for members who own and operate their own business. This insurance covers business expenses that continue when your business revenue slows or stops because you are totally disabled due to illness or accident. Overhead insurance covers the operation of your business such as rental or mortgage interest, utilities such as hydro, heat and water, depreciation, employee salaries and so on.

Group Insurance - Is an affordable way to cover your employees. Your employees are your most important asset, and an engaged and healthy workforce is a key component to any business's success.

For a free consultation please call: (416) 953-9947.

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