As a responsible business owner you do not think twice when taking out insurance cover for business assets such as premises, stock, plant and equipment and vehicles.

But what about some of the most critical elements of any business - the owners, key employees and financial commitments? Whether your business is a one-person operation or a major corporation, risk protection is as important as maintaining cash flow.

Three Areas of Risk

The following areas are where your business is most vulnerable.

Business debt protection

If your business owes money, whether to a bank, finance company, the IRD, your landlord, staff, creditors or suppliers, debt protection is a must.

Debt protection is designed to create the cash needed to repay business debt if an insured person dies, is disabled or becomes critically ill.

Key people protection

An effective business continuity plan considers every future possibility, including the death or disablement of the most vital people in your business. Just as it is wise to insure business assets against loss, so it is prudent to insure specialist or skilled people who use those assets or who create business profitability.

Shareholder protection

The future control of your business is important. You want to ensure that your estate receives a fair price for your shares or business interest. Shareholder protection with a buy/sell agreement is an absolute ‘must have’.