Our business has 3 partners and after 2 years together we have started discussing how we can protect the business and our families. What type of insurance should we be looking at?
Hi Chris, it's worthwhile getting very good advice from a professional insurance specialist.
In my business we lost a key person very early on as a result of a sudden death and didn't have this piece solved. We had conflicting advice on whether the corporate PI / Mgt Liability policies may have provided some assistance.
When we went through the process of talking with specialists we found the advice varied substantially - from our experience you're best to find an insurance specialist, a legal specialist who understands estate planning etc and an Accountant you trust. As all three play a critical and interdependent role in designing the right protection for both your business and each partner personally.
Personally - we interviewed a number of these parties and selected an insurance specialist who charged us by the hour vs being paid a commission. For us it was critical to have unbiased advice vs advice paid for by a particular insurance company via commission.
Anyway that's our story - hope it helps.
There are two type of Insurance you need to consider which are best set up separate to your personal cover (but still related).
Key Man Cover & Buy/Sell Cover.
We (Safeguard Life) are Insurance specialists in this are, and can give you the right advice with the right product in the market which as a broker we can source for you.
Please refer to our website (which is about to be revamped) which has details. www.safeguardlife.com.au
Please contact me directly should you like to discuss on 0418778899
Thank you for your questions and it is great to see that you are protecting the business and individuals involved.
There are some great answers by the other professionals in this group and as mentioned it is best to seek advice from an Accountant, Solicitor and Insurance Specialist or Financial Adviser to assist with the structure, levels of cover and estate planning requirements of the business and partners.
It is best to look into the business and identify any areas of concern and gaps in your current situation before putting an Action plan in place. Insurances that you should be looking at include:
Key man cover
Business expense insurance
General insurance options
Each cover has specific requirements and is not for every business, although it best to understand exactly what is best for you and the other partner's of the business.
If you would like to discuss this further and would like an complimentary initial consultation please contact me. I am able to come out and see you as I have client's with similar requirements in the Marrickville Area.
Principal Financial Adviser
RP Wealth Management
T: (02) 9188 1547
M: 0434 502 079