• Small Business Planning
• Commercial Insurance
• Collateral Coverage
• Key Person Coverage
• Group Healthcare and Dental Care Benefits
• Group Retirement Plan
• Succession Planning
• Shareholder/Partnership Agreement Planning
• Corporate reorganization - Estate Freeze
• Professional Service Referrals

Key Person Coverage

The most important element of a successful business is its people; more specifically, its key people. Entrepreneur Andrew Carnegie once commented:

"Take away my factories, my plants; take away my railroads, my transportation; take away my money; strip me of all these, but leave me my people and in two or three years I will have them all again."

When a business loses a key person, several things can happen. First and foremost, the business is disrupted as the owners try to assess what has happened and to develop a plan of action. This disruption usually causes

• A drop in sales as the business focus is diffused.
• Sales that have already been made may not be deliverable or may be questionable, causing clients to go elsewhere.
• Creditors may become concerned and force the company to liquidate assets to pay back loans or, possibly, put it into receivership.
• Finally, even if the business is able to survive all these factors, it still must replace the skills that were lost, if possible.

Fortunately, the possibility of death or disability of a key person is a contingency that can be insured. Business owners can purchase corporate-owned life insurance on the lives of their key people. If one of these key people pass away, the business receives a tax-free death benefit which it can use to:

• Meet expenses and repay debts, thereby easing the fears of creditors.
• As a reserve against the drop in revenue that may occur while the company goes through a period of transition.
• Pay the costs of replacing the lost skills.

Our advisors can tailor a package to ensure you the funds to keep your business operating at peak form.