Business Insurance Advice: Advice, Tips & Answers

Protecting Your Business

It's as important as growing it...

Building your business required significant time, energy and money. What's more, you and so many others likely depend on it for a secure future. That's why it's essential to have the right protection in place.

Here are some important ways insurance can help safeguard your business:

Help your business survive the loss of a key person.

If your company includes an employee or owner whose knowledge and skills are critical, that person's unexpected death or disability could have far-reaching consequences for your business.

That's why key person life and disability insurance should be part of your business succession plan. Key person life insurance provides a tax-free cash payment if an insured person dies, while a disability policy pays a monthly benefit if an insured person becomes totally disabled^†. In either case, your business could use these funds to:

• Continue operating until important decisions are made
• Recruit, hire and train a suitable replacement
• Pay off debt and/or negotiate with creditors
• Reassure customers, employees, investors or potential lenders

Keep up with fixed business expenses during a disability.

Does your ability to work make the difference between your business remaining open or having to close? If you—or another co-owner or partner—generates the income required to pay the company's bills, you may wish to consider disability overhead expense insurance.

This insurance serves as an expense reimbursement plan. It covers fixed monthly expenses such as payroll, property taxes, rent and utilities until the insured person returns to work after a period of disability—or a decision is made regarding the company's future^††.

Reduce the burden of a business loan during a difficult time.

Would your company struggle to pay outstanding business loans if you or a key employee passed away—or if a partner became injured or disabled? Would you have to use company assets, business investments, or even personal savings to meet these obligations?

With business loan insurance, you can have life and disability coverage on key members of your team. Should an insured person pass away or become disabled, your insurance would help pay off or maintain your loan payments—protecting both your business investment and your company.

Want to know more?

Visit our Business Insurance site to explore your options and the benefits of choosing RBC Insurance^®.

All products and services are subject to the terms and conditions of the applicable insurance contract. Exclusions and/or limitations may apply. In the event of any conflict, the terms and conditions of the insurance contract will govern.

^† Total disability means that because of injury or sickness, an insured person is under the regular and personal care of a physician and is unable to perform his or her job duties.

^†† Benefits are payable for either 15 or 24 months and may start as few as 15 days after the disability occurred.