Business Protection
Keyman Insurance
Many businesses protect their buildings, stock and premises with insurance policies. But many also forget to protect themselves with Keyman Insurance against the financial consequences of losing a key member of their team.
Directors, sales people, technical staff – losing any of them can cause major problems in terms of cash flow, business performance and serious inconvenience.
Wells Financial can help you find a way round this potential problem by recommending suitable Keyman Insurance. With this cover in place, a lump sum is paid to the employer in the event of the death or critical illness of key workers.
So you will have the funds available to replace – either temporarily or permanently – that worker, and be secure in the knowledge that lost profits and continuing sick pay are covered.
Shareholder and Partnership Protection
Death of a shareholder or business partner is a serious risk. But, despite affecting many smaller and medium businesses, it is often ignored.
The business not only loses valuable expertise, but may also be exposed to structural and management upheaval. It could even be wound up. This is because the deceased’s share in the business will pass to his or her estate – along with all voting rights, etc.
The loss of expertise can be addressed by taking our advice on Key Person Assurance, but the other issue is potentially more serious and requires a different approach. The survivors need to be able to buy the deceased’s share from the estate – which means having a sufficient fund of cash. Life assurance can provide the fund, but incorrectly structured policies may defeat the object by creating substantial tax liabilities.
We fully understand the issues and can advise on suitable policies to provide the fund. We will also highlight the points that need to be discussed with your legal advisers to make certain the survivors will have an absolute right to buy out the deceased’s interest.
If you co-own a business, and haven’t yet made provision for death, contact us for an initial appraisal of your needs.