Succession Planning insurance is an important type of cover to consider if you have a large business that is reliant upon certain individuals to take the reigns and drive the company in the future – you will be covered in the event something prevents this from happening. This is an insurance to cover the key person in a business who is expected to take over the business and lend a specific skills set to the company. The successor is one who has been engineering the business through its stages and is instrumental to the future success. It is a financially derived insurance and so this type of insurance is in place to cover the cost of the loss if that person can no longer be the successor for the company.
Because these insurance policies can be intrinsically linked to the functions of a business and often deal with large amounts of money, you will need to ensure it is created properly. This is why you will need to structure Succession Planning insurance with a solicitor and accountant to ensure adequate cover and that full steps are in place.
Succession planning insurance is distinct to partnership insurance as this protects against a more integral loss to the business and both can be used concurrently in order to protect against greater losses to the business as a result of a loss of people. Key considerations for this type of insurance include the type of business you are operating, the potential role of successors and executors, superannuation benefits, tax consequences, how business assets interact, if it is a husband/wife run business, the level of business debt, and if there is an over reliance upon a single individual to generate revenue.
If you are looking for Brisbane Insurance and are interested in talking further about business insurance or succession planning insurance, than get in contact with Cover Plus today by calling Craig Shanley on 07 3368 2412 Or fill out the contact form below and we will be in touch within 24 hours.