Life Insurance for your business probably isn't something you've given much thought. You and your business partner(s) have built a business and are enjoying all the benefits of being an owner. You're both healthy and life insurance is the last thing on your mind, but it's something you should pause to think about. Here's the deal, If your business partner passes away, are you prepared to buy out his/her spouse or family? If not, are you prepared to bring the spouse or family member on as partner? Maybe the answer is yes and don't need a Business Life Insurance Policy. If not, you should consider one. I am going to make this post extremely short and to the point, because I know life insurance isn't the most exciting subject to read about. Life Insurance for businesses is typically used to fund a Buy Sell Agreement, so to fulfill the agreement, you'll need life insurance. 

As far as obtaining a life insurance policy, the first thing you’ll want to do is get a life insurance quote from an agent. Getting a quote is usually straight forward and only entails name, date of birth, coverage amount and the term. They may ask some basic health questions. If you are satisfied with the quote, the next step is the application (each person will fill one out). The application is going to go into more detail and there will be questions why the insurance is needed. In this case it is needed for the business. Also keep in mind they will most likely want to see financials. You will also want to make sure you select the beneficiary. This is the person that is getting the money should a death occur. These funds will be used to buyout the spouse or family member for their portion of the business that the deceased owned.
 
It might involve some time and paperwork to get everything setup, but it’s much easier to put the time in now, especially if you don’t have a contingency plan in place. Again, these agreements should not be overlooked when it comes to owning a business with partners.
 
If you have any questions about a Business Life Insurance Policy or any other Business Insurance, please let me know. You can also, go to our website to request a quote: http://www.striveinsurance.com/life-quote.html
 
Jason Matison
Commercial Insurance Agent
Austin, Texas

When it comes to Business Insurance policies, Workers Compensation should be at the top of your list as a business owner or risk manager. Although it is not required in Texas, it is highly recommended.  That being said, YES, it is necessary. Lets take a quick look at Part I and Part II of the Workers compensation policy and see why it's necessary. 

• Part I of Workers Compensation addresses employee work related injuries or occupational disease. This is essentially the heart of the Workers Compensation policy where the insurer agrees to pay for injuries sustained during the course of employment. Part one of the policy has eight clauses. One thing to note: Health insurance and General Liability do not cover work related injuries. 

 

• Part II is Employers Liability Insurance (not to be confused with Employment Practice Liability (EPL)). This part addresses the employers protection. If the employee believes the employer is negligent in the work related injury, and decides to sue, this part of the policy will respond. It will cover attorney fees, court fees and judgments or settlements. There are nine clauses to part two of the policy. 

As you can see, there's a reason most states require employers to have Workers Compensation coverage because it is extremely necessary. To be honest, in my 12 years as an insurance agent, I've seen more claims from Workers Compensation policies than any other policy. If you have questions about Workers Compensation coverage or any other Business Insurance policy, please feel free to contact me. If you would like a quote, please fill out the application below. To read another post about Workers Compensation, see this previous post Is Workers Comp Insurance Required? 

Jason Matison
Commerical Insurance Agent
Austin, Texas