Australasian Mining Review
Issue link: http://ebook.aprs.com.au/i/37922
174 The right risk insurance for your organisation Running a business comes with risks. The loss to your business of key stakeholders and key people may seriously risk the ongoing viability of your business. The right plan and funding can make all the difference in the event of death, disablement, sickness or injury occurring to owners and key staff. Business Risk Insurance Keyperson Protection Keyperson insurance provides a business with a lump sum capital benefi t in the event of the loss of a business owner/s or key staff member/s including company boards due to death, disablement and/ or critical illness. It enables the business to off-set loss of profi ts, fund for a suitable replacement/s and/or reduce borrowings. Salary Protection - Mining & Resources Sector Specifi c We specialise in working with a select group of life companies to secure comprehensive salary protection solutions (income protection) for individuals working in the mining and resource sectors. Most people in general think to insure their physical assets but often forget their most important asset: their ability to earn their income. Our solutions provide benefi t payments to individuals to replace their income due to accident or illness up to 75% of derived taxable income to a maximum of $75,000 per month. Shareholder Equity Protection (Death, TPD & Critical Illness) Equity Insurance can provide the shareholders of a business with suffi cient capital to ‘buy out’ a departing shareholder in the event of death, disablement and/ or serious illness. Business Loan Protection Emergency funding to repay the loan(s) in the event of death, disablement and/or serious illness on the one who has given a personal guarantee of lodged personal asset security. Business Expenses Protection Business Expenses Cover provides cover for the operating expenses of your business while you are unable to work due to sickness or injury. Business Risk Succession • Shareholders Agreements • Buy/Sell Agreements • Valuations Services • The Trigger Events • Funding and Timeframes Shareholders Agreement (SHA) An SHA allows shareholders to exercise their rights associated with their shares, held for a specifi c business and is a critical component of a business succession plan. A Shareholders Agreement deals with areas that are not dealt with in the constitution of the company. The Article provided by Thrive Financial Management [Insurance and Superannuation] _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ implementation of a properly structured shareholders agreement to ensure a smooth transition when a shareholder exits the business. Buy/Sell Agreements A buy/sell agreement is a contract usually entered into between business partners pursuant to which the surviving partners are bound to buy out the other partner’s interest in the business should a specifi c event occur. Specifi c events (also known as trigger events) which may trigger a buy/sell agreement include retirement, resignation, default, death, disablement or illness. Funding and Timeframes An effective business succession plan will allow business owners to fund the ‘exit’ of a partner. This may be by way of vendor fi nance, external borrowings or some form of insurance arrangement. The succession agreement will generally determine the timeframe to close out fi nancial payouts and closure between partners. Group Insurance Plans for the Mining & Resources Sector Many employees today are underinsured, and have not given much thought to how much insurance they need nor have expertise in selecting the right insurer. Your business benefi t - A properly structured employee benefi ts program can help your business attract, retain and reward the best people while enhancing your organisation’s productivity. Insurance today Most superannuation funds offer some form of death or disability insurance. However, it is rarely suffi cient to meet an individual’s requirements. In addition a properly structured group insurance arrangement may provide better terms and lower premiums than personal policies and in many instances cover is guaranteed irrespective of previous medical history. Superannuation Advisory If superannuation isn’t your thing, then knowing you have an advisory team actively managing and advising you the on intricacies of superannuation and the opportunities that lie therein may be just be the perfect thing.