Specializing in business risk for small to medium sized businesses, we understand that the people are an organisation's most important and valuable asset.

Unlike large companies, the success of SME's are often heavily dependent on 1 or 2 key people. That makes insuring these key people in the business as important as insuring the building, the plant and the machinery.

These key people are often also the Owners/Shareholders of the company. By ensuring we have properly protected these key individuals, we are actually protecting the business,  the equity position of the business owners, and the personal financial position of their families.

To properly protect these businesses, it is important to consider all three of these. Therefore the insurance solutions should include advice for the possible implications of death and disability of both a shareholder and a key person, where they are not one in the same.

Important questions to consider for business owners

  • Do you have the right ACC cover and are you paying the right levies?
  • How much revenue/cash flow will the business lose if you can't work?
  • Could your business survive without you being there?
  • How much would it cost for replacement labor to cover your position in the business (assuming you can be replaced at all)?
  • If you have business key person cover, will it pay in addition to your personal income protection ?
  • How's the bank going to view your business going forward now that its key person is unable to work?

What about Shareholders?

  • Have you read your shareholders or partnership agreement? 
  • Do you know what would happen if either of you were to die or become permanently disabled? What happens to your shares? 
  • Do you understand the Pre Emptive rights clause?
  • Did you have a buy-sell deed? If so, how are you funding it?
  • Do you have the correct ownership on the existing insurance policies for the division of funds to purchase your partners shares?

What about you and your family?

  • What will your family receive from your business if you die? Are you sure?
  • Can the business afford to pay you out if you are permanently disabled?
  • Do you have a pre-agreed income protection for your family that will pay out when you need it?
  • Does your mortgage protection pay in addition to ACC?
  • Will your business partners spouse gain half of the business if they die? What if they don't want to sell out?

Let's get together to nsure you have the right solutions for your requirements.