Business protection is the process of implementing strategies to preserve, protect and promote the value of a business.
Business owners need to protect the integrity of their business in order to:
- Maintain business operations in the event of the loss of a key employee
- Preserve the value of their business until they choose to exit
- Better facilitate a transfer to family members, key employees, other owners or third parties upon their exit
- Key Person – Protects a business against the loss of a key employee because of death or total disability. Implementing a life insurance and/or disability income policy on the key person helps provide the funds necessary to recruit and train a replacement.
- ESOP (Employee Stock Ownership Plan) Repurchase – Uses life insurance to provide the liquidity necessary to fund the employer's repurchase obligation of stock distributed to employees through an ESOP.
- Business Overhead Expense - Reimburses business owners for business expenses incurred should they become too sick or hurt to work - allowing them to keep the business running. This insurance helps them until they can return to work or arrange for the transfer of the business.
Key materials listed below.
Business Protection Email Template (LF193)
Approach business owners about implementing strategies that can help them protect the value of their businesses in preparation for a transfer of ownership.