keep an even keel

Keep your business on an even keel

keeping an even keel

Profit margins, business loans, demanding customers! Smooth sailing in a business is hard enough without adding the complications of injury, illness or even the death of a business partner or key person.

John had everything covered. That is what he thought. John and his mate had a successful printing business for 10 years. His mate was married in the same year and they were more than business partners. Their families grew up together. John and Helen took the boat up the river for skiing and Ben and Marie, their kids always went to the shack with them.

A few months ago Ben commented that we need to go over all the general insurances for the shop and the vehicles and the personal stuff and the house to see if we could consolidate all the insurances. It was a good idea because Marie was having trouble tracking it all. John agreed it was a good idea and made sense.

In the meantime Helen, who was always on the ball, said that we needed to up grade all of the personal insurance covers. John agreed. John had taken out his personal cover for his death, critical illness and total and permanent disability and income protection a few years ago. His Financial Adviser would contact him each year and John was too busy to make the  time for an appointment.

Helen insisted that John make the time and get everyone to meet with their financial adviser. John grumbled. Ben was not keen either. Helen and Marie got their heads together and organized the  appointment.

The Adviser explained that when they first took out the insurances for each individual that at the time was all very good. They all needed some extra cover as their debts and commitments were higher. Both families had upgraded their homes and lifestyles. The business was booming, now employing 3 full time expeienced staff and an apprentice. John being the sales man and Ben the techo behind the success.

What they did not understand was the implications of replacing themselves in the business……..who would do the sales job if John was unable too or what if Ben has an accident and we had no one to do his job. The apprentice was not ready to take on Ben’s role.

If Ben or John happened to have an accident or worse still die, who keeps the business going? Helen and Marie only share the administration a few hours a week. The kids are still at college, the mortgage, the living expenses and all the business overheads. What happens?

That’s why every business should include business insurance as a matter of course.

There are a number of key areas you should consider when implementing insurance into your business plan. And we can explain how to protect your business against events which may adversely affect its liquidity, profitability and ongoing viability.

A combination of  lump sum and income protection  can help your business survive all of these scenarios.