Business Security Insurance Plans
Insurance is a vital security measure for corporations. Your advisor at Fincor will ensure your business has coverage with the most appropriate and competitively priced insurance policy. Here are common types of business insurance.
Key Person Insurance
Key Person Insurance is a life insurance plan that provides coverage should you lose your critical executives to illness or death. It also covers you, the business owner. Types of key person insurance include life insurance, critical illness insurance and disability insurance.
Key person insurance will protect your business if you or someone suddenly cannot work. It can also help secure or pay off business loans or provide you or a business partner with funds to help buy the other person’s shares. This is beneficial if one of you is leaving the business. Key person insurance can be used to pay off debt or cover other financial burdens that might arise when losing an essential person in your business.
How much coverage do you need? The amount will depend on your business and how much replacing and training a key person’s replacement will cost. These are the details we will discuss these details with your Fincor advisor when we set up your policy.
Buy and Sell Agreement Insurance
Buy-and-sell agreement insurance will help decide how to reassign a business partner’s business share if they pass away or leave the company. These agreements often use life insurance policies to fund the buyout if in these instances.
When you build a buy and sell agreement, you’ll determine the value of your business and how a partner’s share of the company will be transferred. With a cross-purchase agreement, remaining owners can buy out the shares of a deceased or selling owner. With a redemption agreement, the business entity itself will buy out the shares of the selling owner.
To learn how to get started and what should be included in your buy and sell agreement, contact Fincor!
Fincor provides our insurance products and solutions in conjunction with PPI Solutions. PPI is a national Managing General Agency focused on insurance solutions.
