Every business has key people who play a vital role, from those involved in day to day operations to those that determine strategic direction. If you were to lose a key person from your business the  reality is that it could impact on the level of your business revenue, your ability to pay expenses, and your relationships with external suppliers and customers. 


You and your key people face the risk of major illness, disablement and even death, which can have a serious impact on your business. By protecting yourself with insurance, and insuring key people, if you or they should die or become disabled, this protection can help your business to survive.


There are several options when looking for key person protection, including Life Cover, Trauma Cover and Total & Permanent Disability Cover. It is important to identify the cover that is most appropriate for your business situation, so that you get better value for money.


Income Protection insurance protects your lifestyle should something unexpected put a stop to your income. If you suffer from a sickness or injury that prevents you from working, it can provide you with a regular income until you're back on your feet. By paying a monthly benefit, it helps make sure your financial obligations such as mortgages, household bills and general living expenses can be met and that your current standard of living isn't put at a risk. 


In many cases, much of the profit is poured straight back into the business rather than drawn as a personal income. This means the personal drawings of the business owner do not accurately reflect their income. Implementing an Agreed Value contract such as Business Continuity Cover as an example, may enable you to have some certainty of outcome should the need arise.


To ensure we are providing our clients with the best advice we can in relation to their business finance requirements, we have referral relationships with a range of lending institutions and their professional advisers.


Having the ability to refer to the appropriate specialist professional adviser(s) has proven invaluable to our clients. 


Shareholders/Partnership Agreements minimise disputes in how private companies or partnerships are run, valued or funded. Such agreements can also reduce the precariousness and costs involved of a potential business break-up. 


The Buy/Sell Agreement is designed to take precedence over the Shareholders/Partnership Agreement, in the event of the death or disablement
of a shareholder. Buy/Sell Agreements are usually underpinned by the appropriate insurance policies on the Shareholder's or Partner's lives.


These Agreements serve as an effective time-saving tool for owners to plan their retirement and exit the business, including preparing the business for sale and/or appointing a suitable successor. While the best time to implement these Agreements is during the early days, it is possible to construct one around
existing business structures. 


Alistair Holt Ltd has relationships with a number of law firms throughout
New Zealand who have drafted comprehensive agreements to meet our clients' needs. These documents have included well researched precedents to address
the issues surrounding the use of death, trauma and/or total & permanent disablement cover.


Please contact Alistair Holt to discuss and assess your requirements.