Business insurance

Your business relies on a few key people whose expertise and contributions are invaluable. Ensure your business can carry on even when they’re gone. Here’s how it works:

Your business buys a life, critical illness and/or disability insurance policy on the life of a key person in the business. In the event of their death, the business receives a tax-free payout that provides immediate cash so your business can:

• Keep daily operations running smoothly

• Reassure lenders and employees

• Pay off debts

• Cover the cost of recruiting, hiring or training someone to replace the invaluable skills that were lost

You've worked hard to secure loans to grow your business. Make sure your business can continue to thrive even if the person responsible for repaying the loans gets sick or passes away.

With business loan protection, your business buys a life insurance policy on the life of the individual responsible for repaying the loans. In the event of their death or disability, the business receives a tax-free payout that allows the business to:

• Pay off outstanding business loans

• Relieve financial burdens on the business and its stakeholders

• Protect the business owner and their estate from becoming liable for business debts

• Help sustain business operations in a time of transition

If you’re a business owner, partner or shareholder, your death could trigger capital gains tax on your business assets, including any shares and partnership interest. Without proper planning, your family could end up with a heavy tax burden, forcing them to sell the assets.

With the right life insurance policy, you can provide your beneficiaries with the funds they’ll need to cover capital gains taxes and secure those assets when you're gone. Take steps today to protect your family’s future and the value of your business.

As a business owner, so much depends on you. If you get sick or hurt and can't run your business for a while, business overhead expense (BOE) insurance helps cover essential operating expenses like rent, utilities and employee salaries.

Take the time you need to recover, knowing your business will run smoothly until you’re back.

Ensure a smooth transition of ownership—and avoid potential conflicts—when your business faces big changes like the retirement, disability or loss of a partner. Here’s how buy/sell funding can work for you and your business partner(s):

1. Decide together what will happen if any of you can no longer be part of the business. Often called a buy-sell agreement, this covers who will buy that person’s shares, a fair price for the shares and how the sale will work.

2. Set up a funding tool for buying out the shares of the departing partner. Life insurance is a common and affordable choice. 

3. When one of you leaves or dies, the life insurance policy (or other financial tool) is used to buy that individual’s share of the business. This ensures continuity for the business while providing financial security for the leaving partner or their beneficiaries.

Adding group health and Registered Retirement Savings Plan (RRSP) benefits to your compensation package not only helps you attract and retain top talent but also shows your team you’re committed to their financial and overall wellness.

There are also tax advantages for you as a business owner, as many premiums are tax-deductible as a business expense. Group health and RRSP benefits are a sound investment in your workforce and your business's success.