Why is business continuation insurance needed?
Of course, when you start up and develop your company, the thought of death and your business’ future in the case you can no longer manage it does not naturally cross your mind. However, the investment into Colorado business continuation insurance coverage is one of the most important ones you will make in regards to your company. In many cases, company rules and requirements may make it necessary for the surviving owners or key players to purchase the passing owner’s interest in the company within a short timeframe – while the funds for such a large purchase may not be readily available. Professional Colorado business succession insurance provides the financial liquidity to safeguard the company from losing its operating capital and good market standing in the event of owner death.
What are the options for this type of insurance?
A special type of Colorado business succession insurance agreement that provides the necessary protection and stability when one of the owners passes away is called a buy-sell agreement. This is a document that provides for a smooth transition and can work for any type of company, from a sole proprietorship to a partnership to a limited liability company. The two kinds of buy-sell agreements used are cross purchase agreements and entity agreements. Cross purchase buy-sell agreements provide for a clear and logical mechanism under which the deceased owner’s shares are sold to the surviving owners. The entity agreements put the business entity in control of owners’ shares in the event of death, which would prevent confusion or hindrance from the owners’ heirs in the event of death. Whichever format you choose, you need to be aware of the details in order to make an informed decision.
Why should I work with DCI-INS on such insurance?
Our team has the knowledge and experience in the field of business life insurance, including Colorado business succession insurance. Over the years, we have helped numerous businesses understand the importance of obtaining such insurance and have built completely customized coverage packages for them. It needs to be kept in mind that business continuation insurance coverage reassures the market about your company’s stability while creating additional liquidity for the passed owner’s interests by converting business interest into ready cash. Obtaining this type of insurance demonstrates a long-term vision and the plans to preserve and further develop the business going forward. Our highly qualified experts will take your requirements and needs as the focus of their work in putting together an insurance product that makes the most sense to you and your business. If you ask our current clients, you will quickly see why an increasing number of business owners turn to DCI-INS for all of their business continuation insurance needs.