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Northern Rivers Business Protection Advice
What if something happens to you? The success of your business depends on you, but what if something unexpected happens? What will happen to your business, your future, or your family?
In the Northern Rivers region, from Ballina to Byron Bay and beyond, business owners often juggle multiple roles—engineer, director, cleaner—and the last thing on your mind may be how to protect your business in case of the unexpected.
Are you in a partnership in business? Have you considered how your business would continue if one of you were no longer able to participate?
If your business has partners, and one of them were to pass away or become permanently disabled, partnership protection and buy/sell agreements ensure that the remaining partners can buy out the affected partner. This provides security for the family of the affected partner while allowing the business to continue without disruption.
At Coast Financial Planning in Ballina, we understand the local business environment and the importance of protecting your partnership. We guide you in setting up a buy/sell agreement that outlines how the business will handle such events, helping protect both your business and your family.
This way the deceased partners estate will receive the liquid value of the share of the business share of assets and the surviving partners will retain 100% of the business without un welcome partners interfering in your business.
At Coast Financial Planning on Ballina. We have seen too many times business’s folding due to not been able to buy out a deceased partners share or indeed new partners been involved that may have different work ethics. We will give you a clear idea of how to go about this and how to protect you and your business partners.
Details of the partnership protection are usually put down in the partners individual wills and usually have first refusal on the purchase of the deceased share of the business.
As the partners own the individual insurance policies on each other and the business do not own them, the premiums for the insurances are paid by the partners, not the business and therefore are not tax deductible.
Our financial advisors in Ballina will sit down with you and your partners and see if this is the way for your business to be insured. We ensure you receive best advice at all times and offer a continued after service. This means we will review your circumstances each and every year to ensure you are on the right tracks not just now but in the future also. As and when your business changes we will be along your side to offer the continued right financial advice.
Does your business rely on key employees?In the Northern Rivers region, local businesses often rely heavily on key people with unique skills. If a key employee falls ill or passes away, would your business be able to operate smoothly without them?
Key Person Insurance is designed to protect your business if a crucial employee is no longer able to work due to illness, injury, or death. It ensures that your business has the resources to continue operations, replace key staff, or cover losses during a transition period.
For instance, if you run a specialised service in the Northern Rivers—whether it's a hospitality business in Byron or a manufacturing company in Ballina—and a key employee generates significant revenue, Key Person Insurance can provide a financial safety net.
At Coast Financial Planning, we work with businesses in Ballina and surrounding areas to ensure they have the right coverage.
A good example of a Key Person as follows:
If the purpose of a Key Person Insurance policy is to cover the revenue generated by that keyperson, then the premiums will be 100% Tax deductible. This means you can claim back tax on your premiums each year.
The amount of cover required for the Key Person is generally linked to the amount of revenue your key person generates for the business. For example if your key person generates $500,000 a year for your business, then the cover for that key person will be $500,000. This allows your business a full year’s income to replace or train another key man for your business.
At Coast Financial Planning here in Ballina. We ensure you receive the right advice for your circumstances. If you have a Key Person in your company ensure he is covered to ensure your business is safe against all odds.
Business succession planning ensures that your business continues to thrive even when unexpected events occur. Whether you're based in Ballina, Lismore, or Mullumbimby, having a clear succession plan can be the difference between survival and collapse.
Examples of Business Succession:
Key Person Insurance: Protects your business’s revenue stream by compensating for the loss of a key person.
Partnership Protection: Ensures that in the event of a partner’s death or disability, the remaining partners can buy out their share and avoid disruption.
At Coast Financial Planning, we help businesses across the Northern Rivers region establish clear and effective succession plans. This ensures that all your hard work in growing your business is not lost due to unforeseen events.
