WHAT IF WARREN BUFFETT WAS THE KEY MAN OF YOUR BUSINESS?
Key person coverage is essential in a business, whether you’re small, medium, or international.
Key people play many important roles:
Has managerial responsibility.
Is responsible for sales.
Is connected with creditors.
Is responsible for client/customer relationships.
Is responsible for bank financing.
Is responsible for manufacturing.
Designed the product.
Has connections with regulators needed to get approvals.
Frequently is the highest paid employee.
Provides special skills unique to the business.
Clearly, the loss of a key person can have a huge impact on it’s functioning; the morale of the company; and its value to investors.
Life and disability insurance are typically used to manage these risks. They are cost-effective; provide the amount necessary to secure the business against the loss of the key person; and make the benefit readily available.
Through the stevenkobrin.com, we have many contacts among insurance providers to cover business of all sizes, in all industries– and in virtually all countries! Let me know if you need a quote.
But what if your key person was somebody of the stature of Warren Buffett? A recent article in The Wealth Advisor addresses that very topic. No doubt insurance plays a role here; at the same time, you can see how the organization has been structured to protect itself against losing him. It’s a fascinating look at the proper structuring of a very large, complex, conglomerate of business interests.
Click here to read the article.