The right insurance and financial planning strategy can help keep your business on course so you can achieve your goals – whether your business is in start-up mode, entering a strong growth phase, become more established, or nearing ownership succession.
Knowing the right solutions for each phase of your business can help you better understand how to protect and maintain what you’ve worked so hard to achieve. There are key insurance needs at various business stages and it is important to determine how well covered you are.
Start-up Phase: Business Insurance offers a solid foundation for your growing business
As your company grows, so will your need to protect it. Losses and unexpected business interruptions happen when you least expect them: a client is injured on your property, your business is vandalized, or a fire in the neighboring shop damages your office. If the worst happens, you want to know your company is protected with the following:
1. Commercial Property Coverage
This protects against loss, damage, or theft of your property, contents, and other items. Be sure your commercial policy contains coverage for loss of income from business interruption to help you pay rent, utilities, and other fixed business expenses
This protects against claims of bodily injury and property damage
3. Errors and Omissions (E&O)
This coverage protects professional advice and service
Commercial property coverage and commercial general liability are essential at every stage of your business.
Growth Phase: Protect your key team members
1. Individual Wealth Products
These products can provide creditor protection for business owners and their families
2. Segregated Fund Assets
These may be protected from creditors in the event of bankruptcy, so they can be an effective way to safeguard at least part of your financial assets
Individual wealth and estate planning also protects growing small businesses from the sudden loss of key team members if they become critically ill, disabled, or die. Replacing lost revenues and providing the necessary funds to pay expenses is essential for the business to remain successful.
1. If a key team member dies, term life insurance provides funds to the business while it adjusts to and deals with the resulting transition.
2. Disability insurance can help offset lost revenues if a key employee becomes disabled.
3. If a key business owner dies and a buy-sell agreement is in place, its provisions will provide funds for the heirs, employees, creditors and surviving partners to cover expenses.
Established Phase: Employee benefits and retirement savings contribute to business performance
Established businesses need to attract top performers, avoid costly turnover and enhance employee satisfaction. Showing employees your business is committed to their health and well-being contributes to your company’s success.
1. Group Benefits
These plans can attract and retain qualified employees who provide your business with a competitive edge.
2. Group Retirement
These plans can help to reward employees and help them save for the future. Employer-sponsored retirement programs help employees save money while reducing and deferring taxes.
Taking the right steps to fully insure your business now will help you continue your business success and exceed your financial goals.