Specialised insurance cover arrangements can be organised for business owners and we recommend that all partners involved in a small business consider insuring themselves and their business assets against loss. Careful consideration and planning needs to occur to ensure that:

  • Interruptions to the revenue producing capabilities of the business are addressed
  • Loss or injury of a key person, who substantially contributes towards ongoing business revenue and profitability, is protected against
  • Appropriate policy ownership and cover is established to ensure that fair value of the share of business passes to an estate/appropriate person, should a serious health event occur
  • Asset protection is established to extinguish business debts and loan guarantees, should an adverse event occur.

As part of the process, a binding legal agreement should be in place so that all related parties understand what will happen and how they are each impacted, should one of the business partners trigger a specific health event.