Running a business is by no means an easy operation. Business strategy is easy, implementation is hard and complex and bears many risks.

Every business is faced with its own specific risks. To generate profits risks needs to be taken. Key is to avoid those risks that do not compensate you for such.

One risk that almost all businesses face and which if not well managed could be detrimental to its success, is the risk of losing key personnel or shareholders.

Business assurance is a risk reduction tool that mitigates these risks by ensuring that sufficient provision has been made for your business to manage such risks proactively. Business assurance provides certainty, financial liquidity and is instrumental in any succession planning process.


As a business owner, it is prudent to consider the benefits which business assurance offers in terms of risk management, succession planning and the overall stability of the business for the employees. The most common business assurance solutions are:

  • Buy & Sell Insurance – In a business entity where there is more than one owner or shareholder, Buy & Sell Insurance is essential for sustainable continuity. This type of insurance not only protects the business on the death or disability of an owner, but also the estate and dependants of that owner.
  • Key Individual Insurance – Every business has one or more persons among the staff members upon whom it may heavily depend upon for its future success. The premature death or disability of such a key person can result in a severe financial loss to a business. The purpose of Key Individual insurance is to compensate the business for the loss that it would sustain in such an unfortunate scenario as it provides the necessary liquidity for the recruitment and training of a new key person.
  • Contingent Liability insurance – A policy is often effected by a company on the life of an executive director to cover an overdraft. The untimely death of one or more directors could materially impair the company’s credit facilities. To secure the company’s loan capital it may become necessary for a policy to be effected on the life of a key working director. Examples include, inter alia, the following:
    • To cover a personal guarantee;
    • To cover a shareholder’s loan account;
    • To cover a mortgage bond;
    • To provide a sinking fund or cash reserve.


Every business is unique in nature and the most suitable business assurance solution would therefore vary according to the needs of each business.

We can assist you with the implementation of a suitable business assurance solution, highlighting the following aspects:

  • The appropriate risk cover provider – The market is flooded with various insurance houses. We can assist you in selecting the best and most reputable product provider to meet your unique needs.
  • Premium growth pattern type – There are various growth patterns available such as level, fixed escalation or age rated. We can assist you by highlighting the differences between the different types and thereafter empower you to select the most suitable option for your needs.
  • Cover amount – Being under insured is a risk in itself. We assist you to ensure that you are adequately covered.
  • Tax considerations – We will outline the tax implications of each type of business assurance cover for you and assist you with structuring your cover as efficiently as possible.
  • Price vs value – Our independent best advice ensures that you will receive the best value for money.

Contact us today for an evaluation of your business assurance needs.

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