“Succession planning helps build the bench strength of an organization to ensure the long-term health, growth and stability.”
– Teala Wilson
All businesses carry a variety of insurance including commercial property, general liability and business interruption to name a few. In short, insurance that is designed to protect the physical operations and assets of the business. However, many business owners overlook the human capital assets of the business, the people that run the business, and make everyday decisions that drive successful outcomes.
The right type and amount of insurance will reduce your company’s exposure to unexpected financial loss due to events out of your control.
RECORD TYPE: Life Insurance
There are three main types of life insurance, Term Life, Universal Life and Whole Life. The type of life insurance your corporation needs will depend on what you are trying to accomplish, such as:
- Key Person coverage to minimize the financial impact of an employee’s death.
- Funding for a Buy-Sell agreement between shareholders.
- For estate succession or to pay income taxes at the death of a major shareholder.
- As an investment vehicle to defer or reduce income taxes on passive income.
Suggested Action: Upload a copy of all Life Insurance documentation, statements and premium notices each year or whenever you make changes to the coverage.
RECORD TYPE: Living Benefits
Living benefits include Critical Illness, Disability Income and Business Interruption insurance. All are used to help mitigate the financial impact that a serious illness of a key person would have.
Suggested Action: Upload a copy of all Living Benefits insurance documentation, statements and premium notices each year or whenever you make changes to the coverage.
RECORD TYPE: Property Insurance
Commercial property insurance is a broad term used to describe policies that protect the physical assets of a business against loss or damage from a wide range of causes. Most offer numerous riders and should be reviewed annually to ensure they continue to provide the best value available.
Suggested Action: Upload a copy of all commercial Property Insurance documentation, statements and premium notices each year or whenever you make changes to the coverage.
RECORD TYPE: Professional Liability
Professional liability insurance is used by many professional businesses to protect owners and employees against claims of negligence or malpractice.
Suggested Action: Upload a copy of all Professional liability insurance documentation, statements and premium notices each year or whenever you make changes to the coverage.
RECORD TYPE: Other Insurance
Other types of insurance include commercial auto, worker’s compensation and cyber risk coverage to name a few. Maintaining an inventory of all the insurance your business owns will help to ensure it is up-to-date and relevant as circumstances change.
Suggested Action: Upload a copy of all Other Insurance documentation, statements and premium notices each year or whenever you make changes to the coverage.
NEXT Steps
- Download Resources
Click the Resources link to download and print the various worksheets and templates applicable to your needs. Set aside some time over the next few days to complete each one. Remember to involve your partner/spouse should you have one. - Gather Documents
Complete each worksheet or template and gather other statements and documents for each type of Record to be uploaded to this Tile. - Upload Documents
Using a scanner or the Sidedrawer Mobile App, upload all statements and documents to the appropriate Record for secure storage and collaboration with your family and trusted advisors. - Add Collaborators
From the Sidedrawer home screen, click on the Collaborator icon to add someone you wish to give access to one or more of your Records. Enter their email, name and relationship to you, then select the Record and permissions to be granted.
Click here to print the Corporate Insurance Document Checklist.