Business Coverage Considerations for Owners

Business Insurance Basics

Owning a business is much different than simply working for a small business. You completely rely on the success of the business to support yourself and your family. If you suddenly became ill and were no longer able to work, would you know what to do?

Choosing a disability buy-sell plan, which is an agreement between owners of a small business to buy out a co-owner in the event of a permanent illness or disability, can help to make sure that your small business is able to stay afloat. There are various ways to help fund a buy-sell plan, including:

  • Payments from current earnings – the cost of a buy-sell plan can be paid in installments after an owner’s disability. For the owners who still remain active, it could mean putting a drain on the business for a few years. The payments that will go to the disabled owner would be dependent on the future performance of the business after the owner’s disability.
  • Cash – the owners could accumulate enough cash to buy out the disabled owner. However, keep in mind that coming up with enough cash could take months or years.
  • Loans – if the business is able to qualify for a loan after the owner’s disability, borrowing enough money to cover the purchase price will require that any future income of the business will be enough to cover the terms of the loan.
  • Insurance – the only way to make sure that your business has the funds needed to complete a sale for a buy-sell plan is to invest in a disability buy out insurance policy.

For all of your business insurance needs, contact All Nevada Insurance in Las Vegas, Nevada. We will work with you to make sure that you have the protection that you deserve, all at the right price.