Is your business underinsured?

You work hard to grow your company. Whether you’ve just begun a start up business, have run a one-man shop for years, or have expanded your organization to include multiple locations, it’s important your business is properly insured. Your business can be part of the lasting legacy you leave your family and can impact your community for many generations.

If you’ve expanded your business within the last ten years, then it’s time for you to review your assets, net worth, and make sure your organization has enough coverage. Whether you’re a partner in a law firm, medical office, own your own electrician business or another key organization, it’s crucial to make sure your business valuation is up-to-date. If your book of business has doubled or even quadrupled since you opened, making sure you have proper coverage on yourself or a key employee is crucial. The last thing you want is for the organization you’ve worked so hard to build to not have a sufficient plan in place to continue your legacy if something happens to you.

Now is the time to make sure you or your key employees are properly covered. Key person insurance (also known as key man insurance) can ensure that your organization can sustain itself if something happens to you or a crucial person in your organization. Key person insurance is designed to pay a life insurance death benefit to a business rather than individual beneficiaries if the insured person dies. This can be a tax-free benefit.

As a business owner, it’s also important for business partners to consider and fund a buy-sell agreement. If you have multiple partners at your firm, the last thing you want is for something to happen to one partner and then you own the organization with the partner’s ex-spouse. Keeping clear lines of communication as you prepare for the inevitable is necessary. Since a buy-sell agreement is funded by life insurance, making sure your organization is properly funded couldn’t be more important. A buy-sell agreement is a binding legal document and should be updated regularly as the business’ earnings and balance sheet change.

Many outside agencies will charge $10,000 - $30,000 for a business valuation. However, here at Staggs Financial Services we contract with trusted nationwide financial firms and can offer you a free business valuation. Contact us today to schedule your free business valuation.