Updated on: March 31, 2017
You and your best friend have spent years building a thriving business. You work perfectly together, and everything is going as hoped, but what do you do when your first nightmare comes true? If your business partner were to die, you’d lose a friend, a confidant, and an important part of your business–what now?
The answer to that question can mean the difference between closing the doors of your operation and your partner’s children going to a great college and thriving. And that’s quite a difference.
If you’re a business owner preparing for the future of your business, a business succession plan is important. Remember: Insurance plays a vital role in business succession planning. In the following paragraphs, we’ll cover the ways in which this type of business insurance can be a valuable tool to integrate into your plan. To get started, contact us today.
What would happen to your business if you were to withdraw, retire or pass away? Who would inherit it? What will happen to your company when you’re gone? Answering these questions can be complicated to say the least; this is where business succession insurance can help.
Business succession insurance is often utilized for businesses being transferred from one owner or generation to the next. Whether the owner is preparing for a transition, retirement or death, this type of insurance can help businesses avoid any major disruption during times of change. The agents at Latorre Insurance will help you to identify your goals, successors, ownership and management roles, financing and more, guiding you to the best plan for your business.
A branch of life insurance, business succession insurance plays a major role in a business’ estate planning and can be used to pay estate taxes, also settling the business’ interest value. Remaining owners and family members can use it to help pay for the deceased, disabled or withdrawing owner’s business insurance at a fair price. That said, if there are any family members who are uninvolved with the business, business succession insurance can also support them by equalizing the inheritances.
The use of business succession insurance isn’t limited to other generations and family members, however. For businesses dependent on employees not related to them, it can be used to protect the business from the loss or absence of these key employees, as well as to ensure that the proper successional ownership and management roles are in place.
Succession planning can be complicated, but with Latorre Insurance, you have the peace of mind of knowing your business is in good hands at all times. Latorre Insurance has the ability to assemble the professional team you need to keep the lights on and the doors open. From valuation to agreements to funding, we can help create a plan that works for your specific situation. Contact us today to learn more.
* Coverage and exclusions vary from policy to policy. Please review the specific policy for details.