A business may have equipment, inventory, contracts and accounts.
But often its greatest dependencies are people.
What happens to this business if a critical person isn't here tomorrow?
The Owner
If an owner dies or becomes unable to work:
- Who makes decisions?
- Who owns the business interest?
- Does the family inherit an operating business they know how to run?
- Is there a succession plan?
- Are business and personal finances interconnected?
Key People
Some employees or partners may carry:
- Important customer relationships
- Technical knowledge
- Licenses
- Sales responsibilities
- Operational knowledge
- Management responsibilities
What would losing one of them do to revenue or operations?
Business Debt and Obligations
Review:
- Loans
- Leases
- Guarantees
- Payroll
- Vendor obligations
- Contracts
- Ownership agreements
Some obligations can continue even when an important person cannot.
Ownership and Succession
If there are multiple owners:
- What happens when one dies?
- Who receives that ownership interest?
- Does the surviving owner want to be in business with the deceased owner's heirs?
- Is there a buy-sell agreement?
- If so, how is it intended to be funded?
Employees
Business protection isn't only about owners.
A disruption can affect employees and their families too.
Questions Worth Asking
- Who is essential to this business?
- What happens if that person disappears tomorrow?
- Who would own my interest?
- Who would operate the company?
- How would debts be handled?
- How would my family be affected?
- How would employees be affected?
- Do our legal agreements and financial arrangements actually work together?
GEMACE Perspective
For many business owners, the business isn't simply an asset.
It may represent years of work, family income, employees' livelihoods and part of the owner's legacy.
Protecting the business can therefore mean protecting much more than the business itself.
You don't have to become an insurance expert. But you should understand enough to ask better questions, recognize what matters and make more informed decisions.
How Does This Fit Into Your Life?
GEMACE LifeMap™ begins with your family, responsibilities, goals, concerns and what you're already counting on before discussing possible solutions.
You don't have to become an insurance expert. But you should understand enough to ask better questions, recognize what matters and make more informed decisions.
Educational Information
This material is provided for general educational purposes only and is not intended as individualized insurance, financial, investment, tax or legal advice. Individual circumstances vary. Insurance products, features, availability, eligibility, costs and policy provisions vary by insurer, product and applicant. Review actual policy documents and consult appropriately licensed or qualified professionals regarding your individual circumstances.