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Business insurance and business consulting partners

Business insurance can be a complex affair, but as Australian business consultants with a holistic approach to financial planning and business consulting, our team can guide you through the succession planning and business insurance minefield.

Business insurance – a key part of your strategy

Reducing risk is as important in business as it is in day-to-day life. It should be a key part of your business plan and growth strategy, providing peace of mind for you, your family and your business partners should the worst happen. We’re talking about more than just financial security – business insurance enables you to concentrate on your growth and bottom line.

The objective of Business Succession Planning is to ensure that the business survives even after the death or critical illness of one of its principals. In simple terms it provides:

  • A terminating owner (or their estate) with the option to sell their interest in the business to the remaining owner(s); and
  • The funding mechanism for the remaining owner(s) to purchase it.

A formal agreement, known as a buy/sell agreement, is entered into between business owners detailing how the surviving owners are bound to buy out the departing owner’s interest in the business should a trigger event occur. Specific trigger events usually include death, divorce, long term disability, retirement or bankruptcy.
A funding mechanism is also required to complement the buy/sell agreement and options include selling assets, taking out a loan, gradual buy-out or insurance. Insurance is a common method used as the cost, convenience and flexibility in comparison to other options is very attractive.

Business insurance includes the following:

  • Key Person Insurance – covers the financial consequences caused if a person crucial to the business dies, suffers a traumatic illness or is totally and permanently incapacitated.
  • Business expenses – provides the business owner with a monthly income benefit to cover the costs of fixed business expenses while they are unable to work for a period of up to 12 months.
  • Guarantor protection – ensures that a loan can be repaid in full upon the debt, traumatic illness or total and permanent disability of a business owner who provides a guarantee for a loan.


  • The amount of cover required.
  • Ownership of the policy – can be self ownership, cross ownership, insurance trust, business entity or superannuation fund (new rules apply from 2014).
  • Taxation consequences – the taxation treatment of risk insurance depends upon a number of factors including the purpose of the premium, who pays the premium and policy ownership.
  • Business valuation – a decision on how the business would be valued upon a trigger event has to be agreed upon.

As you can imagine this is a very complex area and we can guide you through the process. 

Explore our site for more information about our comprehensive insurance services covering personal life insurance, income protection insurance, critical illness insurance, and total and permanent disability insurance. Alternatively, contact our business insurance advisers to find out more about how our financial planning, accounting and business consulting services can give your business an edge.