Business Protection

You probably have some or all of your wealth tied up in the business.

And although business may be going well today, you never know when life may take an unexpected turn.

Preparing a business risk protection plan to deal with unplanned events can ensure you protect everything you’ve worked so hard to create.

Just like a parachute, you only use it once so you want to make certain it works.

Business Equity Protection (Buy/Sell cover)

A Buy/Sell agreement and supporting funding arrangement helps ensure the Directors needs are met in the event of the involuntary departure of one of them (i.e. Death, serious illness).

Protecting your equity in the business

  • Serving the family of the deceased/disabled member as a guarantee that they receive a lump sum for their share of the business without the need to negotiate with continuing Directors

Protecting the harmony and continuity of business

  • Allowing the continuing Directors to get on with business rather than getting caught up in a negotiation with an Estate over the value of a share or running of the business
  • The ongoing business Directors not having to unexpectedly (& at short notice) raise funds for a purchase of the deceased’s/disabled’s share

Business Profitability Protection (Key Person cover)

Profitability is often closely linked to the input and performance of key individuals.

Key person cover provides a capital injection to the business in the event of the involuntary departure of a director or key employee (i.e. Death, Serious Illness or Injury).

The benefits of having an agreement and cover in place is in:

  • Providing the business a lump sum cash injection for an amount which is the estimated lost revenue/profit due to this key person’s absence.
  • Allowing the continuing Directors to get on with business and focus on how they will replace/re-distribute tasks of the key person and not having to worry how they will make up the lost profit.
  • Providing an amount for the estimated loss of goodwill or other value in a business with the loss of a key person

Income Protection

Income protection cover provides up to 75% of your Gross Income package in the event of illness or injury.

The benefits of having an agreement and cover in place is:

  • Serving the sick/injured director as a guarantee that they receive an ongoing income in the event of temporary or permanent illness.
  • The sick/injured partner not relying on the business for ongoing income and therefore placing strain on it.

Your Business Protection Plan

Protecting your valuable asset and your income

At the end of the day, a business protection plan is about sensibly managing risks to ensure that whatever happens, you protect the asset you have worked so hard to build, and the income it provides.

Our role is to help you make smart decisions in establishing your business protection plan.

How do we do this:

1. Understand

Understanding in intimate detail your business, including:

  • The markets you work in and your revenue/profit drivers
  • Ownership structures and timelines
  • Business valuation
  • Business financials
  • Directors remuneration structures
  • Key staff roles and duties
  • Interpreting current shareholding arrangement

2. Plan / Recommend

What is the most sensible way to go about putting a plan in place taking into consideration:

  • Appropriate levels of cover
  • Appropriate ownership structures
  • Taxation consideration
  • Product selection

3.     Action

We will take control of implementation from start to finish, keeping you in the loop by regular communication with one or all directors along the way.

4.     Review

This is the start of a relationship that will continue to develop as your business grows.  It will be important to regularly check in so your business protection plan is always relevant.

5.     Claim

If something unexpected does happen, you will thank your lucky stars that we are on your team.

Our role is to help you understand if a claim is possible (especially where you think it might not be), and if so, to remove as much stress and hassle as possible. We look after all the administration and processing of your claim, to help you get paid sooner and ensure any business and family disruption is minimalised.

Meet your Advisors

Contact us today on 03 9844 0484

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