Life insurance part of a business’s risk management

business-life-insurance

Losing a key employee could disrupt sales, hinder production and potentially create credit issues.

Operating a business requires you to manage risks to preserve assets and prevent losses. You’ve ensured that you have appropriate commercial liability insurance and perhaps directors and officers coverage or employment practices protections.

Nevertheless, the biggest risk to your business could be the loss of you or other company leaders.

LEADERS ARE KEY

When evaluating risks, have you considered the impact of an unexpected death of an owner or one of your key employees – not just emotionally, but financially?

The cost of an unfunded buy-sell agreement could be just as devastating to your balance sheet as an uncovered liability claim. A properly designed life insurance policy can play a critical role in protecting the financial future of your business.

Losing a key employee could disrupt sales, hinder production and potentially create credit issues. Those costs might be difficult to overcome without adequate coverage. The employees you identify as needing liability coverage may be the same key leaders for whom you need life insurance. Purchasing life insurance can fund a business continuation plan, keeping your business financially attractive to those who might want to buy out a deceased person’s interest in your company.

PRIVATE OR PUBLIC

Whether your business is privately held by a few owners or has many shareholders with a complex ownership and management structure, both management liability and life insurance provide critical protection for the financial position of your organization.

A lack of coverage ultimately can impact your business’s ability to obtain credit or even continue operations. More importantly, adequate coverage protects your personal assets and the future value and security of your business.

With the help of an independent insurance professional, you can quickly tailor a solution to your specific needs.

To learn more, see Key employees – Are they really key?

 

Neither The Cincinnati Life Insurance Company nor its affiliates or representatives offer tax or legal advice. Consult with your tax adviser or attorney about your specific situation. For policy service and additional information, speak to an independent agent representing The Cincinnati Life Insurance Company. For a complete statement of the coverages and exclusions, please see the policy contract. All applicants are subject to underwriting approval. Products and riders available in most states.


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