Commercial debts, key people, shareholders, partnerships and overheads. If something happens to you, what happens to them?
Commercial Debt Protection
Intended to repay any overdrafts or term loans that have been guaranteed by the Principal of the Company. Guarantees DO NOT die with the Principal, they will continue to hold the Estate liable until such time as all debt has been repaid. This can also include contingent debt such as guarantees to third parties, unexpired lease guarantees, i.e. if you have commercial premises on a rental of $25,000 per annum on a four times four renewal basis supported by a Personal Guarantee, you effectively have a potential liability of $100,000 on that.
Key Person Protection
If your business is dependant upon a few key people what would happen to your business in the event of either the permanent loss or a total but temporary loss? Business people have no compunction about insuring their commercial premises and their commercial assets, yet they do not insure against the loss of human resources.
Key Person Insurance is effectively an extension of liability and business interruption insurance. We are in the business of supplying venture capital in the event of tragedy.
Shareholder Share Protection
If you are an owner of a limited liability company, you may well have other shareholders in the business whose rights are guaranteed under The Companies Act. In the event of the occurrence of death, trauma or total and temporary disability of a shareholder, are you ready to deal with your fellow shareholders’ accountant or lawyer?
We can show you how to overcome this problem to ensure that the remaining shareholders retain control and that the family of the affected shareholder are given a fair value for the shares in the business.
Similar to a Shareholder Share Protection Scheme but intended to protect the partnership whether that be two partners or multiple partners.
Business Overhead Protection
In the event of a total but temporary disability of yourself, (or possibly one of your key personnel) how do you ensure that your business can continue to meet all its financial obligations? Whilst you personally may be in receipt of an income from an income protection policy who will generate the income to pay the rent, the rates, the insurance, the business debt, the lawyer, the accountant etc? If you were suddenly to be removed from the business for six or nine months, would the business survive?
“40% of disabilities are due to disease or illness, 34% are due to accident or injury. However only 5% of the disabilities lasting six months or more were related to accidental causes.” Source: NZ Health Information Service 2001, NZ Life Underwriting Magazine October 1987.