Key person insurance and buy-sell agreements protect your firm from financial disaster
Key Person Insurance and Buy-Sell Agreements are unique to each company. Structuring them correctly takes time to evaluate and set up with the help of an attorney. At Bennett & Porter we possess the resources and knowledge necessary to make sure we evaluate and set up a proper succession strategy in the event of an unfortunate incident were to transpire so the business can continue to run properly.
Key Person Insurance:
Ever wondered how your business would be affected if you suddenly lost one of your top salesman due to an accident? How would the business proceed in the event you lost your CFO due to a sudden illness. These events are rare but can be devastating to even the best run companies if plans are not put in place to reduce the impact of the loss. Not only is it hard dealing with the emotional impact of the loss but financially it can severely restrict a business moving forward.
Key Man or Key Person Insurance can be used to offset this exposure. By taking out a life and/or disability policy on the “key person” the business is able to compensate itself for the financial loss that arises from the death or extended incapacitation of the important member of the business.
Buy-Sell / Cross Purchase Agreements:
Another potential devastating loss would be the death of one or all of the owners of the business. Who would run the business in the absence of the owner? How would the ownership interest transfer to the next shareholders? Below are a couple of common strategies used to address this issue.
Whether you reside here in Scottsdale, Arizona or anywhere else in the country, our agents are ready to assist you. Please give us a call today at Bennett and Porter or fill out our free auto insurance quote form. Either way, one of our professionals will be happy to answer your questions.