By taking out this type of insurance, the financial risk associated with the loss of one of the partners is mitigated
A successful business is not created overnight. Sometimes, it takes years for the endeavor to succeed, the result of a lot of planning and hard work. However, these continue even when the company is already established. After all, if the entrepreneur’s desire is to see his business prosper even after he is no longer involved, in the event of permanent disability or death, for example, then he needs to plan very carefully. After all, who will take control of the company?
In this scenario, business succession insurance may be the solution. Although it is still little known in Brazil, this product is already consolidated in the international market. Good succession planning can boost the company’s growth and set the stage for the definitive departure of one of the partners.
The insurance to be contracted can provide the resources so that the shareholders can immediately buy the part corresponding to the partner who died, for example. This facilitates the transition process, as day-to-day operations will be minimally impacted, in addition to reassuring the heirs in the event of the loss of the family provider.
By taking out this type of insurance, the financial risk associated with the loss of one of the partners is mitigated. First, it will not be necessary to have cash on hand to make this purchase. Second, it prevents a person who is not prepared to assume an important role within the company.
Without this type of insurance policy, a company could have its future jeopardized. If the heirs are not interested in maintaining the business, the other partners may find themselves obliged to go through a liquidation procedure, having to raise the necessary capital to buy the part that belongs to the former. All this without proper planning. Failure to do so could mean the end of the business.
Business succession is a process that requires strategic planning. Therefore, do not hesitate to hire a company that is specialized in this type of insurance. Pryor Global brings together the best products in the insurance industry in partnership with excellent insurers and operators. After all, your business is as important to us as it is to you. Get in touch with our team and learn about our solutions.