As a business owner, you may be facing complex decisions about growth, new issues, even mergers and acquisitions – and you also want to make sure you protect your business, especially when venturing into new territory. Yet, all too often, small businesses overlook the importance of insurance in their business planning. Certified Financial Planner Jennifer Black advises that Business Insurance is often the most overlooked aspect of Business Planning, which has proved a very costly mistake for some companies and their owners.
Black is rated one of Canada’s top Advisors, and is President of Dedicated Financial Solutions, Mississauga’s Small Business of the Year. She sets out some valuable advice for other business owners. “Your first step is to connect with a professional and knowledgeable financial advisor who is experienced in small business needs,” confirms Black. “Your advisor can explain the value of various types of insurance for your business, and work with you to determine the investment products and services that best suit the needs of you and your company.”
What is business insurance?
Business insurance protects your business and your family from the financial and operational burdens associated with unexpected absences, either your own or your business associates’ due to injury, illness or death.
How does business insurance work?
As a business owner, business insurance allows you to be prepared for the unexpected, in a number of ways. You have the option to:
- Insure your partner’s shares in your company
- Insure your business loans
- Insure a key person in your company
In the event that an insured party dies or becomes incapacitated, the beneficiary of the policy will receive a lump sum payment, enabling seamless business continuity and operations. Insurance can provide for both income replacement and business overhead protection. It’s a simple, cost effective way to ensure the stability of your business for years to come.
Of course, a company has many other business needs beyond those of its ownership team. Insurance products for employees can promote employee retention and potentially reduce operating costs by reducing turnover. Here are some of the Group products that a small business can consider for their work force:
- Pension plans: Group registered pension plans, deferred profit sharing plans and RRSPs
- Group Health & Dental plans including Long Term Disability coverage, and even Critical Illness.
With the help of a financial advisor who specializes in small businesses, owners gain the professional insight and analytic capabilities that can help them make business development decisions with confidence. “With the right business protection and group benefits, small businesses can be well positioned for growth,” concludes Black. “However, it’s equally important to periodically evaluate your coverage against current needs to ensure you’re properly protected. If you haven’t done that in the last three years, you’re likely overdue. A review should be part of your annual Business Planning process.”
To learn more about Dedicated Financial Solutions and business protection, please contact us.