Business Planning Services
At ALMEA, your Portland business planning services experts, we pride ourselves on facilitating solutions to complicated business issues that often fall well outside the realm of insurance matters. Through our relationship with BizAssure, we can get you the help and information you need, usually free of charge.
If one of your key employees becomes unable to work, would it jeopardize your company’s ability to function? If your company is small, there is a good likelihood that a few individuals are driving the business.
If so, you may want to consider key person insurance. It is specialty insurance that pays your company should an executive or other key employee die or become disabled. The coverage provides your company with liquidity to finance the loss and move forward during the transition.
If you as a business owner are disabled and unable to run your business, business overhead insurance will reimburse the business for certain overhead expenses. It differs from a personal disability insurance, which pays benefits to age 65, in that it typically pays benefits for a one to two year period.
Typically, eligible business overhead expenses are:
- Employee salaries
- Employment taxes and benefit costs
- Rental payments for property and equipment
- Principal and interest on mortgaged business property as well as property taxes
- Accounting and legal fees
- Business insurance expenses
- Interest on business debts
- General office supplies and utilities
When recruiting key executive employees, an executive salary continuation plan can be a differentiating benefit to offer. If the covered employee retires, dies or becomes disabled, you would continue to pay the employee or his assignee for a designated period of time.
- IRC ERISA regulations are not applicable to non-qualified plans.
- You are free to select the eligible participants and benefits are flexible.
- Plans can be discontinued at any time, and are easy to manage.
- The employee does not have to report taxable income until the benefits are actually received. If the plan is properly designed, you can recover all costs.