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Business Continuation

Our experts conduct a complete risk analysis where they identify issues that may put your business at risk such as man-made or natural events and death or disability of a key employee or owner.  
Once they are identified our experts suggest strategies and opportunities to:
• minimize,
• eliminate
• or transfer the risk.
You have the peace of mind of knowing that the safety of your biggest assets; your people and your business are protected.
Our Business Continuation Solutions not only ensure the immediate survival of the business, but also ensure that the owners and employees have peace of mind.
• Learn more about Business Continuity.  Download our complimentary guide here.

Key Person Insurance
While most business owners understand the need to protect against unforeseeable risks relating to their capital assets, fire and theft for example, risks relating to another key asset; human capital, are often overlooked.
These risks involve the loss of key personnel due to health, disability, critical illness or death.  Such events can threaten the viability of your business, and the risks are far from remote.
For a 40 year old employee, there is a 60% chance that they will become disabled for a period of three months or more before the age of 65.  Where a disability of over three months does occur, the average duration is between three and four years.
There are several threats to consider:
• Your business performance could lag due to the absence of the individual.
• You incur costs to replace the individual.
• Creditors may  restrict or withdraw the businesses credit.
• Suppliers may tighten payment terms.
• Customers may reconsider using the business as a supplier of product or service.

The need for a buy-sell agreement

The need to protect your business if a co-owner becomes disabled, suffers a critical illness or dies.
Many businesses have multiple co-owners, wither through a partnership or shared ownership. If one of the owners dies, this could have a serious impact on your business as the business interest will pass immediately to one or more of the owner’s heirs, such as a spouse.  The business now has a new owner in the mix, regardless of whether the new owner has the qualifications or experience to actively participate in the business.
A funded buy-sell agreement pre-determines who will retain ownership and how to fund the transition in buying-out the exiting owner or heirs.  
The surviving owners need a source of funds to not only buy out the interest, but to boost the organizations working capital if necessary to compensate for the loss of service and financial backing.
In the event of death, a properly funded buy-sell agreement ensures that the deceased family members will not have to be involved in a business they have no interest in by providing the capital necessary for buying out the heirs. 

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• Copyright 2010 Junkala and Associates Inc. •