Protection strategies every business owner should know

Protection strategies every business owner should know

Keeping any business moving in the right direction often means having a protection strategy in place, and it should be a combination of different types of protection. Take a moment and think of your business as an automobile. A safe vehicle doesn’t keep you safe with just one safety feature, but with multiple things like seat belts, airbags, anti-lock brakes, crumple zones and side impact beams. Your business should also have layers of protection against potential setbacks like the following:

Disability

One roadblock you need to consider is the possibility you may become disabled. Think of disability income insurance (DI) as a strategy to protect your ability to earn an income and protect your business

Whether helping to cover your personal income or helping to ensure your business has the financial resources it needs if you were to become disabled, DI is one of those essentials that every business owner should consider.

Losing a key employee

If you have employees who are vital to the success of your business, you should consider a strategy called key person insurance. Your business can help protect against the loss of an employee by taking out a life insurance policy on the key employee. Should they die, your business would receive a death benefit to help you cover setbacks such as lost income and recruiting expenses for their replacement. 

Securing your business interest

You, more than anyone, know how much work has gone into building your business. Your investment needs protection, and a buy-sell agreement can help.

A buy-sell agreement is a legal agreement that can specify what happens to your business if you die, become disabled or choose to sell. It helps avoid scenarios, especially with multiple owners, where ownership is left in a void after a death. You want your business to proceed in a direction of your choosing.

Having an agreement is the first step, but where does the money come from to fund the agreement? Learn more about buy-sell agreements.

Turnover

One major setback that you have to consider is turnover at your business. Losing employees can sap productivity, and recruiting and training replacements is a tangible cost to you that can sometimes exceed the salary of your open position. One way to protect against turnover is to offer benefits that reward those who go above and beyond.     

Comprehensive protection strategy

A great way to ensure your business has a comprehensive protection strategy is to trust an outside pair of eyes to look at your business. Your financial professional can help you find areas where your business may need protection and recommend products to help. Having layers of protection against the unknown is a key component to the future success of your business.     

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Insurance products issued by The Ohio National Life Insurance Company and Ohio National Life Assurance Corporation. Guarantees are based upon the claims-paying ability of the issuer. Product, product features and rider availability vary by state. Issuers not licensed to conduct business in NY. 

Disability income insurance policies issued by Ohio National Life Assurance Corporation. Product, product features and rider availability vary by state. Guarantees are based upon the claims-paying ability of the issuer. Disability income insurance is not available in CA. Issuers not licensed to conduct business in NY.

Disability income insurance policies contain exclusions, limitations, reduction of benefits and terms under which the policy may be continued in force or discontinued. For complete details of coverage, contact your financial professional or the company.

This provides general information that should not be construed as specific legal or tax advice nor the law of any particular state.  Please seek the advice of a qualified legal or tax professional for your specific situation.

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