What types of insurance are available?

Business Insurance

Whatever type of business you’re in, it’s important to protect yourself against the unexpected. Taking business insurance will protect you against a range of contingencies like fire, burglary, product and public liability.

Buy-sell agreements

When an owner of a business dies or becomes disabled, often the surviving business partner/s will desire ownership and control of the business, and the estate will want funds to maintain their lifestyle. Buy-sell insurance arrangements can provide the money for this. It allows the surviving business partner/s of a business to buy out the deceased owner’s interest in the business.

Buy-sell insurance should be considered in conjunction with how much personal insurance a person needs.

Most business owners don’t leave their tangible assets (buildings, plant, equipment and stock) uninsured for a single day. Yet it is not their tangible assets, but themselves, their business partners and their key people, who make the business successful.

So, the question is not whether to insure business partners, for the need to protect them is obvious. The question is only: How much insurance should you have on them? Or, how much is a business partner worth?

Property damage insurance

Property damage insurance covers your stock, contents and premises in the case of risks such as fire, water or storm damage and theft.

Key person insurance

Key person insurance will protect your business by providing a lump sum payment to the business if a key person who makes a significant contribution towards the profitability and capital value of the business dies, becomes totally and permanently disabled or suffers from a trauma event.

In simple terms, the business takes out a life insurance policy (e.g. death, total and permanent disablement and trauma cover) on the key person. If a claim is made, the business receives funds to cover the expenses of replacing the key employee (e.g. recruitment and training).