Start & Run a Coffee Bar. Tom Matzen
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Название: Start & Run a Coffee Bar
Автор: Tom Matzen
Издательство: Ingram
Жанр: Экономика
Серия: Start & Run Business Series
isbn: 9781770408029
isbn:
In the absence of a buy-sell agreement funded by life insurance, the death of a partner could cause the immediate dissolution of the partnership in law. Unless there is an explicit agreement to the contrary, the surviving partner’s duty is to liquidate the business, collect all outstanding accounts, pay off all debts, and account as trustee to the personal representative of the deceased partner for the value of the deceased’s interest in the business.
With a corporation, in the absence of a buy-sell agreement, the deceased shareholder’s interest would be considered an asset and would go to the beneficiary outlined in the deceased shareholder’s will, if a will existed. Naturally, the introduction of a new shareholder who owns an interest in the company, especially a majority interest, could have a very traumatic effect on the shareholders and the company’s continued operation.
3.11 Business loan insurance
Often your lender will be able to provide you with insurance coverage for the outstanding amount of your loan and will then incorporate the premium payments into the loan. If you die, the outstanding balance of the loan is paid off.
3.12 Term life insurance
This insures a person for a specific period of time. The most common period is five years. If the insured dies within the term of the policy, the insurance company pays the full face amount to the heirs. The cost of premiums is based on life expectancy for the person’s age during the five-year period. Term life does not have a cash or loan value.
Because term life insurance can be written for various time periods, and because the premiums are generally inexpensive, it is valuable to the businessperson. Term policies are often used to provide collateral security for loans to the firm or for personal obligations.
It is wise to have term insurance for at least the amount of personal and business financial obligations for which you have a direct or contingent liability. This area is frequently overlooked.
3.13 Medical insurance
It is important to take out sufficient medical coverage for your needs. If you are doing any business assignments outside the country, you should have extended coverage that pays for medical bills that may be incurred by injury or illness in a foreign country.
3.14 Group insurance
You may be eligible for group insurance rates if you have four or more employees. The policies of insurance companies vary, but medical and dental plans are available for small groups.
3.15 Workers’ compensation insurance
If you have a number of employees, ensure that you are covered by workers’ compensation insurance. With this coverage, the insurer pays all costs for any injury to the employee. The insurer also covers the employees for all benefits and compensations required by the appropriate laws.
If you have failed to pay your employer’s portion of the insurance coverage, or have failed to meet your responsibilities adequately to your employees in terms of safety, it is possible that you as the employer could be held liable for any injury to the employee as determined by the common law as well as under workers’ compensation laws. Employee coverage and the extent of the employer’s liability vary considerably.
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