best insurance for business Owners?
It's not The Kind Your Client can buy
And, yet, it is insurance for business. What is it? It's a plan.
"Planning's the insurance money can't buy."
J L Adamsson, Flynancial Times, the newsletter, January Edition, 2024
Yes, as a change management planning tool, Adamsson Associates do field underwrite insurance for business owners, to protect what they can and prepare for what they can't. For those:
Planned changes, like the initiation and delivery of a/an:
- risk management plan,
- executive bonus and employee benefit plan,
- safe money place for lifetime income, long term care resources, and legacy planning,
- trust funding for special needs provisions, charitable giving, and privacy from creditors without probate.
And, those less popular:
Un-planned Changes . However, simply having . . .
a change management plan will:
Limit Threats
Leverage Opportunities
Leave a LegacyQ: Why would a business owner buy long term care insurance,
when the business could buy it for them?
Yours, with our thanks for answering 2 quick LTC questions.
Planning for the unplanned changes that the rest of life can bring . . . now, that requires some tough questions that need to be answered:
"What happens if I live, too long? "
"What happens if I die, too soon?"
"What happens if I lose my income to:
these are the hard questions you have asked yourself, Adamsson Associate, and that you must ask before Appropriately recommending insurance for business Owners.
Not all risk is bad, of course. Certainly threats of financial loss are negative risks, but positive risks are what we call opportunity. That's why we love to meet entrepreneurs who are brand new to business ownership.
What to know about Insurance for Business owners
who are new to business
An Open letter to the young entrepreneur for you to copy and customize to meet the needs of your client
Hello there, young entrepreneur!
I'm thrilled to pass on nuggets of wisdom that I trust will serve you well. In this letter, I hope to hit the essentials of insurance for business owners, that will serve as the crucial safety scaffolding you will need as you build a business with as much love and success as I have . . . maybe more.
First off, let's chat about the kind of insurance you'll need, just to start the transition.
If you're drafting an agreement to buy a business, consider obtaining transaction liability insurance. This includes tax opinion insurance, and representations, and warranties insurance which help mitigate risks associated with unexpected legal and financial issues that might pop up in the documentation, or in the actual operations as reported.
Trust me, it’s better to have insurance for business and not need it, than to need it and not have it!
Moving forward, let's ensure the heart and soul of the business feels secure and valued. This is where a comprehensive employee benefits package comes into play. This isn't just a strategy, it's an investment in the people who make your dream work. Include insurance for life, disability, health, and especially long term care.
These benefits show that you care for their wellbeing, and future. Especially that last one--long term care, and not just for your employee, but for their family member's, as well. Why lose productive people who have to stay home with a loved one experiencing an extended care event, when that loved one could afford skilled nursing, thanks to you.
Ah, and don’t forget the deferred compensation plan! (Part of our RestEquity Portfolio.) It’s a fantastic tool to incentivize key employees. It allows them to defer a portion of their salary to be paid out at a later date, making it a valuable tool for tax planning and retirement savings. This can keep top talent with you, looking for lifetime income.
SIDEBAR: A bright feather in your managerial hat would be introducing a change management planner. Transition phases can be turbulent, and having a structured approach to manage changes in processes, culture, and staff alignment will smoothen your sail. It shows you’re not just in charge, but it also shows that you truly care.
Business interruption insurance for business owners-another key part of your change management plan- becomes your safety net if an unexpected event causes your operation to screech to a halt. This coverage helps replace lost income and pay for extra expenses while you’re getting back on your feet. It's also referred to as business overhead expense protection.
As you aim to expand your horizons and perhaps introduce new products or enter new markets, consider product liability insurance or professional liability insurance. This shields you against claims of product failure or service mishaps that could otherwise financially drain your budding empire.
So, let's discuss directors and officers insurance, my friend. This type protects you and your leadership team from claims which might arise from decisions and actions taken within the scope of your official duties. This coverage is particularly important in today’s litigious environment and is often referred to as errors and omissions insurance.
Don’t overlook cybersecurity insurance, especially in this digital age. Protecting your business from cyber threats and data breaches is not just smart; it’s imperative. Customize this shield well, and it’ll save you many sleepless nights.