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For many owner-managed businesses, the most important assets are not equipment or inventory. They are the knowledge, relationships and decisions of the people behind the company.
Matthew Lawrence, QAFP®, Financial Advisor, helps business owners consider life, disability and critical illness insurance designed to support continuity when an owner or key person dies or becomes unable to work.
BUSINESS INSURANCE FOR NIAGARA BUSINESS OWNERS. PROUDLY CANADIAN.
BUSINESS INSURANCE FOR NIAGARA BUSINESS OWNERS. PROUDLY CANADIAN.
Some of the largest business risks are human.
Some of the largest business risks are human.
The unexpected loss or absence of an owner or key person can affect revenue, client relationships, daily operations, financing and succession plans.
At the same time, the owner’s family may depend on the income and value produced by the business. Without accessible funds, even a well-considered agreement or transition plan may be difficult to carry out when the business is already under pressure.
Turn an unexpected absence into a planned response.
Turn an unexpected absence into a planned response.
Business insurance planning begins by identifying the people whose death, disability or serious illness would create a significant financial consequence.
Matthew helps you consider what would be affected, how long disruption could last and where additional funds might be needed. Coverage can then be structured around a defined purpose - providing the business and its owners with more time, liquidity and choices.
Insurance does not replace a continuity or succession plan. It can help provide the funding needed to carry one out.
Business insurance needs business context.
Business insurance needs business context.
You work directly with Matthew to understand the purpose, ownership, cost and limitations of each proposed policy.
His QAFP® background brings a broader perspective to how coverage connects with corporate cash flow, business debt, personal financial security, ownership agreements and estate intentions.
Where appropriate, insurance planning can be coordinated with your accountant and lawyer so that the policy supports the legal and tax structure they recommend.
What can business insurance help address?
What can business insurance help address?
Key Person Protection
Key Person Protection
Provide funds to help manage disruption, recruit assistance or replace revenue associated with an essential person.
Buy-Sell Agreement Funding
Buy-Sell Agreement Funding
Create liquidity that may help the remaining owners purchase the interest of a deceased or disabled shareholder.
Business Loans and Other Obligations
Business Loans and Other Obligations
Help address debts, guarantees and ongoing commitments that could remain after the loss of an owner.
Owner Disability or Critical Illness
Owner Disability or Critical Illness
Provide financial support when an owner’s health interrupts their ability to work or manage the business.
Family Financial Security
Family Financial Security
Reduce the extent to which a family’s financial future depends entirely on the continued success or sale of the company.
Estate and Succession Needs
Estate and Succession Needs
Help create liquidity for taxes, ownership transfers, inheritances or other objectives connected with the owner’s estate.
The policyholder, insured person, beneficiary and intended use of the proceeds all matter. These decisions should be considered alongside the company’s legal, accounting and tax structure.
Start with the people the business cannot easily replace.
Start with the people the business cannot easily replace.
You do not need a completed succession plan or a precise coverage amount to begin.
Complete the short form and tell Matthew about your business, its owners and the people most important to its continued operation. He will follow up personally to discuss the risks you want to address and the next step.
Frequently Asked Questions
Frequently Asked Questions
What is key person insurance?
What is key person insurance?
It is insurance associated with someone whose death or inability to work could cause a meaningful financial loss to the business. Depending on the strategy, the business may own the policy and receive the benefit.
Can a corporation own life insurance?
Can a corporation own life insurance?
Yes. A corporation may own and be the beneficiary of a policy, subject to the insurer’s requirements. Corporate ownership can have legal and tax implications that should be reviewed with the company’s accountant and lawyer.
Does insurance replace a shareholder or buy-sell agreement?
Does insurance replace a shareholder or buy-sell agreement?
No. The agreement establishes what should happen. Insurance may provide some or all of the funding needed to carry out its terms.
Does this include commercial property or liability insurance?
Does this include commercial property or liability insurance?
No. This planning focuses on life, disability and critical illness insurance for owners and key people. Commercial property, vehicle and liability coverage require a general insurance professional.
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