Key-Person & Executive Insurance Solutions

Business owners insure risks that they may face at some point, things like: damage/loss of physical business assets, against the loss of profits, workers compensation for staff and professional indemnity/public liability insurance.

However, for many businesses, their most important asset…….. the key person/people within the business, remain unprotected.

The temporary or permanent loss a key person/people could:

• Result in financial loss for the business;
• Jeopardise its continuation; or
• Have a potentially significant adverse impact on the achievement of the business owners’ financial goals.

Key person/executive insurance offers a financial cushion if the loss of a key person/people would negatively affect the company’s operations. Using insurance planning to outsource this risk essentially buys the business owners time to plan and/or implement other strategies to save/allow the business to move forwards/or to shut down.

If a key person/executives/other staff’s absence from the business could cause your business financial harm, then key person/executive insurance is a vital component of your business’s risk management planning. 

We work with business owners/shareholders & key staff to develop & implementing plans to outsource financial risks within the business, including:

• Loss of sales – EG offsetting lost income from lost sales or losses resulting from the delay or cancellation of any business project involving a key person.
• Protecting shareholders or partnership interests. Typically, this enables the remaining shareholders or partners to purchase the financial interests of the relevant person.
• Business loan guarantees. The value of insurance coverage is arranged to equal the value of the guarantee.
• Provision for business key person (directors/shareholders/staff) replacement or loss of shareholder capital value
• Provision for business key person (directors/shareholders/staff) replacement or loss of future revenue/profits (EG a shareholder or someone who is vital to the success of the business are no longer able to participate in the business due to a health related issue)
• Provision for business shareholder payout (compulsory or voluntary acquisition)
• Costs associated with the recruitment and training of a replacement.
• Repayment of debts outstanding at the time of the temporary/permanent loss of the key person (particularly debts that are personally guaranteed).
• Replacement of lost goodwill due to the temporary/permanent loss of the key person.
• Death, total & permanent disablement, crisis trauma, income protection
• Succession planning for family/ other shareholders
• Estate equalization (For business owners, your business shares and assets complicate this process. In addition to usual estate planning issues, you now need to consider business partners, shareholder agreements, and other business relationships.
• Emergency funding (should a claimable event occur, to assist with medical costs, funeral or other emergency health related costs or ancillary expenses)

After identifying your needs and objectives, we then focus on breaking down complicated issues and presenting you with options in clear concise terms, making it easy to implement solutions quickly and without fuss.

When legal, tax, or cash flow issues need to be considered, we work in conjunction with your legal and tax advisers.

Our clients know their financial affairs are being looked after. This leaves them free to concentrate on their lives, their business and achieving their goals.