INTRODUCTION TO BUSINESS PROTECTION INSURANCE

Executive Retention Insurance

Executive retention insurance is a life insurance policy specifically designed to be used as a tool to attract and retain key staff members.

The company pays the premium but the staff member owns the policy. Experienced people like this insurance because it serves as income protection for the staff member and his or her family. The policy can be either portable or non-portable.

Legacy Planning

A successful entrepreneur will want his or her children to be treated equitably upon his or her death.

One child may have an interest in running the business, but others may not. Upon the death of the entrepreneurial parent, the interested child can inherit the business, while the payout from a life insurance policy equalizes the benefits received by other surviving children, or anyone else deserving.

Business Loan Protection

Upon the death of a key staff member, partner or owner, business loans are often called in by banks.

In many cases this means that the business would have to be sold in order to pay back outstanding loans - leaving survivors without much of a legacy from the deceased parent. Business loan protection is a life insurance policy that pays off bank loans when a key staff member passes away so that the business can continue uninterrupted.

Third Party Liability

Liability insurance covers claims made against an organization due to negligence or “carelessness” on the part of any staff member of the organization.

The cost of defending a malicious claim is frequently greater than the amount of damages awarded by the judge or court system and reimbursement for the cost of a legal defense is a major benefit of TPL insurance.

Directors and Officers

Companies and their directors and officers can always be held responsible for any claims against themselves as representatives of, or the company itself.

This is true even if the parties have no involvement in the incident.

Even if the incident wasn’t related directly to the company’s business, directors and officers can still be held responsible if there is some indirect connection to the company.

D&O insurance protects staff and the company itself from claims made against them.

Professional Indemnity

Professionals and service organizations know that any client who is unhappy or unsatisfied to any degree with what they feel was promised by a vendor, they can make a claim for damages.

Sometimes called Errors and Omissions, PI insurance will pay the defense costs as well as any damages a court awards to the plaintiff.

Accident and Health

Personal accidents on the job can be devastating, but illnesses are usually more disruptive and they happen more frequently.

Health insurance can be arranged for an individual, or for the entire company as a group.

Local health or medical policies are not considered adequate by expat standards.

Most companies have at least two tiers of levels to help staff cover the cost of medical emergencies and illnesses – senior staff usually receive greater coverage benefits.

Property and Casualty

Property insurance covers the business premises itself, all office equipment inside and any related contents.

Casualty insurance covers other losses beyond just the physical property and assets themselves.

If a computer is destroyed, property insurance will cover the cost of the hardware. Casualty insurance will cover the loss of the database that was on the computer.

Both are needed by growing companies.

SME Startup Office Package

It’s difficult to get business insurance until after an entrepreneur moves out of his or her home and into a commercial office

But once you’ve made the leap, you’ll need many of the insurance types mentioned previously.

Employees’ compensation is required even if you have only one part-time, temporary employee. Because costs for EC are so low, insurers package or bundle it with a few other protection products that are important even for very small companies.

The idea of startup office packages is to provide the most popular types of coverage that young organizations typically obtain by putting these various coverages into one combined product. This makes it easier for clients to learn about and purchase and cost effective for insurers to sell.

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