Evergreen Life - Business Insurance
What would happen to your business if it lost one of its key people? Perhaps a shareholder, or your top (or only) salesperson. Or even you as the owner.
If you want your business to survive the loss of a person important to your business due to illness or injury - and who wouldn't? - it makes sense to plan for the worst.
Evergreen helps your business develop an insurance plan to:
- Eliminate or substantially reduce debts and ongoing financial obligations
- Replace revenue or owner income lost
- Fund the cost of replacement people
There are two main areas we look at:
Shareholder protection ensures the remaining shareholders can buy out a business partner or their estate if they need to sell their shares in the company due to serious illness, injury or death
When you have shareholder protection cover, you will also need a buy/sell agreement - an agreement that all shareholders sign before anything happens, that sets the ground rules for what happens if a shareholder dies or is taken out of the business. You can discuss a buy/sell agreement with your lawyer, or we can refer you to a lawyer we know and trust.
We can also provide Debt Protection Cover for shareholders to repay debts and other liabilities at the same time.
Key Person Cover
Key person cover allows your business to keep rolling, even when you lose someone that has a big impact on revenue. It could be your top salesperson, or it could be the admin assistant who keeps everything running. Whoever it is, if they're a key asset, you can prepare for the day they're not there.
Key person cover injects cash into the business to cover the costs of things like recruiting, eliminating debt, and meeting contractual and capital obligations.
How much cover? When you lose a key person, you've got several things to consider. Most important to your cashflow is replacing the revenue that person directly brought in. Then there's the time needed to find someone to replace your key person.
You can also incorporate the cost of recruitment into your cover. This could include recruitment agencies, travel, housing and accommodation of family, training, inducements and legal and contract expenses.
With key person cover, you need to consider the entire costs associated with your key person. As with all insurance, you need to consider what you'll really need at claim day, not just the lowest premiums.
Lump Sum or Cashflow? You can tailor key person cover to meet your biggest needs, whether that's a lump sum to pay off debt, or a regular cashflow to cover running expenses.
Contact us to talk about your business insurance needs.