Why Do You Need Business Protection Insurance?
Mar 31, 2019
Businesses and companies are like children; they need to be properly looked after and taken care of in order to thrive and become successful.
Just like you would want to protect your child from harm or danger, you need to protect your business from unforeseen problems and losses.
Protecting your business goes beyond liability and contents insurance, ensuring the premises and retaining vital employees.
A business also needs to be safeguarded against the negative consequences that may occur due to the sudden absence of a key person, director, manager or partner.
This form of safeguarding is what is typically referred to as business protection insurance.
Managing the risk in the event of the absence or loss of a key person in a business through a business life insurance plan is a wise decision.
This offers a wide range of benefits to the business and all the individuals and families concerned.
Business protection insurance is relatively affordable and can help a business to mitigate potential losses and problems.
An example of this might be the sudden illness or death of a business owner, partner or co-director.
Some businesses rely heavily on certain key people within the business.
As a result, these businesses are exposed to the risk of experiencing operational failures should this key person be unable to work.
Worse still, they might even go under completely in the event these people are unable to work due to a long term injury or illness or in a worst-case scenario, death.
Below is an overview of what business protection insurance so you can determine if you need to consider this type of insurance for your business.
Key Person Insurance
Key person insurance takes up a major part of a life insurance plan for a business entity.
The key person insurance policy is designed to enable a business to ensure certain persons against the risk of not being available or in a position to work.
This may be due to long term illness or injury or even sudden death and doesn’t even need to be work-related.
In the event of such a situation, a payment from this insurance policy would allow a business to have a reliable source of funding to support the enterprise.
This is critical as the business goes through the process of restructuring itself and getting back on its feet.
Partnership insurance is also covered by business protection insurance.
The idea of this type of insurance is to make funds available to provide compensation to the estate or next of kin of a partner who may have passed on.
Financial compensation of the successors of a partner in a business, company or firm can be made through a business life insurance plan.
The remaining partners in the business can rest assured that the successors of the absent or deceased partner are properly taken care of.
They can also decide on whether to continue the business or stop operations without worrying about any financial implications on a partner’s estate.
Co-director insurance is designed to make funds available to a business that is a separate legal entity to buy shares from a successor in the event of the sudden absence or death of a director.
CBD Insurance helps businesses and companies across Australia to set up approved life insurance plans.
This means these businesses and companies can access the necessary funds in the event of unforeseen circumstances as discussed in the article.
Do you need a business insurance quote or would like to discuss business insurance in more details? At CBD Insurance, we are here for your needs.
For an obligation-free, competitive quote, professional insurance advice or more information on how we can help you, please contact one of our expert consultants today on (08) 8357 1422 or send a message through our website https://cbdinsuranceservices.com.au/contact/#
LEAVE A COMMENT