What is Business Insurance?

Business Insurance addresses more than twenty unique, yet important, types of risk in the business environment, all of which could have a crippling and even devastating effect on the business. The business insurance cover ranges from the well-known Buy & Sell agreements, Contingent Liability and Key Person Insurance to the lesser-known Loan Account Cover and Surety Cover. In most instances, the biggest risk lies in having some cover in place, but which is not structured correctly. The incorrect structuring of insurance could have a worse outcome than not having anything in place at all, as it will affect both the business and your estate.

Why Do I Need Business Insurance?

Business Insurance is required for a number of reasons. Some of these reasons include, but are not limited to the following:

  1. It is an easy, cost-effective solution for keeping your personal estate (and that of your business partners), and the business separated.
  2. It is an effective and easy way of realising your interest in the business upon your death.
  3. It ensures that any surety that might be called upon after the death of a director/member is covered and will not affect the continuation of the running concern.
  4. It ensures that unwanted people do not become shareholders in the company through their inheriting from the deceased shareholders estate.
  5. It is a cost-effective solution to raise capital to purchase the shares or membership from the deceaseds estate.
  6. All the necessary information is documented in a legally enforceable contract that forms part of a business owners last will and testament.