A buy-sell agreement is a document that states how a business’s ownership is to be transferred upon the death, disability, or retirement of one of the business owners. Typically the owner(s) who remain active in the business after a death, disability, or retirement are responsible for buying the shares from the other owner or their heirs.
At Stolly Insurance we can help prepare these documents, review existing documents as well as perform informal business valuations and suggest and implement risk management products like life insurance to help business owners in this area of their planning.
Often times there are employees in a business that are vital to that company’s continues success. This can be the owner, a key salesperson, or other top executive within the firm. If something happens to that individual the company can be in serious financial trouble.
We help our customers manage this risk by identifying the top talent that the company cannot function without and recommending the appropriate products to help insulate the business from this risk. Key-person life insurance works by insuring the life of the employee with the business owning and being named as the beneficiary on the policy. If something happens, the business will be able to keep their doors open while they recruit and develop someone to fulfill that key role in their organization.
There are so many small businesses out there that require the owner to be an active participant in the day-to-day operations. Without this owner’s daily contributions the business could not continue to function and would close its doors.
If this owner became too sick or hurt to be able to work they wouldn’t have a business to return to. Most owners we speak with are unaware they can obtain a business overhead insurance policy that will help pay things like: payroll, utilities, rent, insurance, etc. if they become too sick or hurt to work. This coverage ensures that they have a business to return to when they recover from their illness or injury. We help our customers obtain affordable protection to manage this risk.