Business Continuation Plans
What is a business continuation plan?
Business continuation planning does not have to be complicated. The primary purpose of a business continuation plan is to protect business owners from the repercussions of a major life event. Such an event may include, the death, disability, severe illness, or retirement of a business owner or other key person. A business continuation plan may also be used to fund a buy-sell agreement.
According to Forbes, fewer than one-third of many small, closely held businesses fail to survive beyond the first generation. Of those that do survive, only half survive the transition from the second to the third generation. In many situations, this is due to a lack of succession planning of one business owner or partner to the next. However, this could also stem from a failure to protect or retain a key person who may be vital to the success of the business.
What would a business continuation plan provide an owner?
With proper planning and implementation, you have the ability to pass your business successfully on to your heirs or may choose to sell your business when you want, for the price you want. It also serves as a useful element of succession planning and can be a crucial part of a business continuity plan. Our plans are structured to meet the needs of business owners, shareholders of a corporation, partners of a partnership, a key person, and/or sole proprietor. Business continuation insurance is a risk management strategy that enables remaining business partners to move forward in the event of death, disability, severe illness, or retirement of key personnel.