Your business produces the wealth that provides you and your family with financial security and your wonderful future lifestyle.What are the risks that prevent you from achieving your business strategic objectives? Is the majority beneficiary of your business insurance your creditors or your family?

CEO Protection - Key Person Insurance

Owners, managers, employees and suppliers can be key persons in a business.

The loss of a key person causes problems with contract performance, winning future business, loss of technical skill or capability and Goodwill, plus replacement search    costs.

A business can own life insurance policies over the life of a key person to offset lost revenue and costs in the event of death, total disablement or critical illness.

Business Overheads Insurance

If you are self employed or a partner in a business and unable to work due to sickness or accident, would your business be able to meet its financial commitments to suppliers and salaries staff?

Business Overheads insurance provides a monthly payment to meet business overheads while you ar unable to work, up to a period of 12 months.

Buy Sell Arrangements between Business Partners

Would the loss of a key person result in a significant fall in business revenue?

Would you need to find extra capital to buy out the former key person?

Would you like to continue in business with the wife of your former business partner?

Would you like to pay ongoing profit share to the administrators of their deceased estate?

In Hong Kong when a Director of an SME dies, the company accounts can be frozen by the bank and the other Directors have to use personal money to keep the business liquid.  Death cover policies should be owned jointly by other Directors.

You can own life insurance policies over the life of a business partner to buy out their equity in the event of death, total disablement or critical illness.

Directors Guarantee

Banks or creditors call on directors to give their personal guarantee in respect of debts of the company.
A Guarantee has four specific meanings:

• A written assurance that some product or service will be provided or will meet certain specifications. This is also known as a warranty.
• A pledge or undertaking that something will happen or that something is true.
• A secondary agreement to answer for the debt of another in case that person or company defaults.
• To stand behind.

In relation to a Directors' Guarantee, often banks or creditors call on directors to give their personal guarantee in respect of debts of the company. Directors' guarantees are more often called for when the company is small in size or has limited assets of its own to support the loan should the company fail to pay. However, even in many cases when the business can support the loan it is policy of most banks to take directors' guarantees.
What this means for a director who is personally guaranteeing the debts of the company is that if the company fails to pay its debts the guarantor, that is the director, can be only be sued if the company cannot pay its debts. Normally, a lending institution will exhaust the assets of the company before it calls on the directors to meet its obligations.

A business can own life insurance policies over the life of a Director to cover the debt and other financial liabilities in the event of death, total disablement or critical illness.