Business Protection
D Moloney Financial
Competitive Business Protection Policies
A business insures its building, its machinery and stock. However, often management and key personnel are the most important and valuable assets within a business!
How would your business survive if:
- One of your key employees or shareholders became seriously ill or died suddenly?
- Your business partner died?
- What would happen to their share of the business?
- How would you feel about a shareholder’s family joining your business?
- If you died, what would happen to your share of the business?
- Are your spouse or children in a position to take your place in the business?
- How will your family survive financially?
These questions should be a cause for concern for every business. You need to talk to about Business Protection.
D Moloney Financial
Business Insurance Protection
Arranging adequate business protection insurance is the only way to ensure that the necessary funds will be available, in a cost-efficient manner to ensure the continuity and the survival of the business. Areas of Business Protection that we at D Moloney Financial Services will advise your business includes:
Co-Director Insurance
Co-Director Insurance gives the directors of a company peace of mind.
Partnership Insurance
Helps to protect the financial security of a business partnership between partners.
Keyperson Insurance
Minimise the financial impact of losing key employees from your business.
D Moloney Financial
Co-Director Insurance
The directors of a company are often the major shareholders, who make all the key decisions. A successful business depends on the close cooperation and experience of the directors. The death of one of the directors can have a serious impact on both the surviving directors and the deceased’s successor(s).
The remaining directors may be faced with a new shareholder and director who has little business expertise or a person they would rather not work alongside. Disagreements may arise if the deceased’s successor(s) has different plans for the future of the business.
Ideally, the remaining shareholders/directors or the company would buy back the deceased’s shares but may not have sufficient funds available to do this.
The deceased’s successor(s), on the other hand, may not wish to become involved in the business and might find it difficult to sell their shareholding. They might indeed welcome a cash sum at this difficult time.
Co-Director Insurance gives the directors of a company the peace of mind that there will be funds available to them, to buy back his/her shareholding from his/her successor(s) should one of them die, thereby maintaining their control of the company.
D Moloney Financial
Partnership Insurance
A Partnership arises when two or more sole traders come together and share the profits or losses of that Partnership. The death of one of the partners can have serious financial consequences for those left behind in that business. Partnership Insurance will protect the financial security of the partnership by making sure that funds are available to compensate the deceased partner’s estate for his/her share of the Partnership.
D Moloney Financial
Keyperson Insurance
When running a business, it is vital to consider and plan for events that could adversely affect its success. In particular, it is important to consider the implications to a business of the sudden death or serious illness of an essential employee – a key person in the business.
Having Keyperson Insurance in place will minimise the financial impact of losing key employees. The employer pays the premiums and in the event of death of the insured, a cash sum is provided which will help to maintain the business and protect its future security.
The death or diagnosis of a serious illness of a keyperson could put a business in a financially unstable condition in a number of ways:
- An interruption of business activity and a consequent reduction in profits.
- Bank loans on which the keyperson gave a personal guarantee may be called in.
- The keyperson may be due repayment of any loans made by him/her to the company.
- Banks and/or suppliers may reduce or withdraw credit facilities over worries about the future profitability of the business.
- The loss of the individual’s expertise and business contacts.
- The need to commit resources to find a suitable replacement. This may be a prolonged process if the individual had unique experience and expertise.