Bourke Financial Services
Business Insurance
What is Business Insurance?
THE NEED
Every business with two or more owners should consider what might happen to the business if one of the owners dies, becomes totally and permanently disabled or suffers a traumatic illness.
A business generally depends on a few people to produce the profits, provide the capital or manage the business. If there is no viable succession plan, there may be significant financial hardship for the surviving business owners, as well as for the surviving family members.
Due to the expertise required, Bourke Financial Services is one of the few Business Insurance specialists who can tailor and advise in conjunction with Accountants and Lawyers on the correctly structured agreements.
THE PROCESS
We oversee and project manage the following activities:
Accounting - a proper valuation of all the different entities (the organisational structure) that comprise the business is crucial in insuring that a fair value is paid for the equity for a departed proprietor. Additionally, in valuing the business, you should consider the CGT liability and provide adequate funding for this.
Legal - a legally binding agreement is required to reflect the wishes and needs of all the parties to the plan. This agreement ensures there can be no dispute as to how equity is to be transferred and how much is to be paid for that equity when a proprietor depart
Financial - Bourke Financial Services determines the funding solution that underpins the agreement and ideally matches the valuation/CGT liability calculated by the accountant. Business protection is a financial solution that can ensure the entire amount will be there from day one in the event of death, TPD and critical illness. Superannuation and other forms of wealth creation have a role to play as well.
Please note that Bourke Financial Services and its authorised representatives do not provide accounting or legal advice, as this is left to the respective professionals that we can co-ordinate for you.
Partnership Insurance
A Buy/Sell arrangement involves the proprietors in a business agreeing to a plan which sets down what they are to do with their respective interests in the business should any one of them die, become disabled or suffer a major trauma.
Key Person Insurance
Key Person insurance protects a business from the adverse economic effects of suddenly losing a key person.