Risk Management

Buy-Sell Agreements

As a business owner, you’re used to a certain amount of risk. However, taking chances with a poorly structured or improperly funded buy-sell arrangement could be cause for great concern. In fact, it may open you up to a high degree of financial risk when you retire, or become disabled or deceased.

Protecting your family and your business are top priorities. A buy-sell agreement may be helpful to you if:

  • There is a high degree of financial risk for the family of a retired, disabled or deceased business owner

  • It’s important to guarantee a market for the sale of an otherwise unmarketable business interest

  • It’s important to fix the value of the business for federal estate tax purposes

  • A surviving owner is unable or unwilling to remain in business with the deceased owner’s heirs

  • It’s important to prevent outsiders from taking over the business

  • The owner or the owner’s estate needs cash and the business is unable to provide it

If any of these issues are of concern to you, it may be time to discuss your succession plan.

Key Person Insurance

The assets of a business, such as machinery, modern technology, and working capital, all fundamentally affect profits. However, it is the experience, knowledge, skills, and abilities of the management team – as well as the specialized talent of other key employees – that combine capital, labor, and materials into sustainable profits. The loss of these employees can be detrimental to the firm’s profits.

Key person life insurance can provide the cash needed to recover lost revenues and cover the costs associated with replacing and training key persons.

Disability Funding

If an unfortunate event were to occur that results in you being disabled and unable to work, disability income insurance can be an invaluable asset that essentially replaces your lost income. Disability insurance costs depend on several variables including the type of work you do, benefit duration, and other factors.