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Business Succession Planning

Business Succession Planning

As businesses are generally owned by one or more individuals, business continuation planning addresses what is to be done in the event of a business owner's death, disability, voluntary termination, or bankruptcy. Without an agreement, the death of a business owner could result in the termination of the business or cause a surviving spouse to become a partner or co-owner with the existing business owners. Generally this is not desirable.

An attorney to address these and other possible issues drafts a Buy/Sell agreement. Life and disability insurance are used in the planning process to provide the funding to guarantee the financial aspects of the agreement.

Key Person Life or Disability

If the death or disability of a key executive would cause financial harm to your business, key person insurance coverage may be necessary to indemnify your company against an untimely death or disability. For example, if certain client relationships were jeopardized or banking lines of credit were called into question as a result of a death, corporate profits may suffer. Key person life or disability insurance could be used to protect a company from such an event.

The following agents are trained in this specialized area of coverage:

• Dan Roddy - danrod@hmbd.com
• Jay Semaan - jsemaan@hmbd.com