Every business is unique and their protection needs are different depending on the number of owners and their roles within it. There definitely are the typical liability and other commercial insurances needed that we refer to great partners to assist you with, but there are others that we at Yorkshire Insurance Advisors, LLC assist in that are not as recognized. Here’s a quick summary of the different needs you may have:
Buy/sell life & disability insurance is very important if there are multiple owners to ensure there is funding for the buyout if an owner passes away or becomes disabled, protecting the business from an unintended owner, and then deceased/disabled owner/family is compensated properly for their share of the business in a timely fashion. Without this coverage, a business may suffer to the point of failure upon an owner’s disability or passing, risking the affected owner’s family will get little for the investment made into the business and unintentionally affect the other business owner(s) and their families as well. A separate buy/sell agreement or terms within an operating agreement should be drafted and implemented with a trusted attorney. Yorkshire Insurance Advisors, LLC does not provide any legal or tax advice, but can provide referrals for local attorneys if requested.
Small businesses also often have key employees that if became disabled or passed away, the business would suffer significant losses. Key-person insurance helps cover those losses and additional costs needed while looking for and hiring a replacement.
Single or two-owner small business, such as a private dental practice, are often most affected if an owner/dentist becomes disabled and has employees and significant expenses that he/she wants to be sure are covered for at least a reasonable length of time to either recover and return to work or allow employees time to find alternative work if the owner is not able to return. Business overhead insurance covers basic overhead expenses such as rent, utilities, employee salaries (not the owner’s) necessary to keep the business going during a disability. It can even pay for a temporary dentist to fill in to help with client retention, and with a loan rider (or separate policy) can cover the monthly business loan payment as well. Without it, a disability may cause employees to find alternative employment along with clients finding alternative sources for what you provide before you return.
Finally, there are life policies that work really well at helping retain top employees within your firm, which is considered non-qualified compensation. This policy can be set up in different ways, but typically a business would put in bonus compensation into the life policy and upon the completion of the agreed upon time frame with the employer, the policy becomes the employee’s free and clear. The policy then could be kept by the employee, surrendered for its cash value or sold as a life settlement if the employee qualified.
We invite you to schedule an initial consultation at 262-366-2702 or e-mail us at .