Why Business Owners need the Guidance of GI Brokers
Mark and Chris had built something special. School mates turned business partners, they had spent the last ten years growing a successful electrical contracting business. Eight staff. Strong client base. Reliable income.
Each year, they paid themselves $150,000 in salary and took $75,000 in dividends.
Their general insurance broker, George, had looked after them for five years. Public liability. Professional indemnity. Management liability. Commercial motor. Tools. Business pack.
George was their trusted adviser. Mark and Chris would call George for anything insurance related. But there was one conversation they had never had.
Over the Easter long weekend, Chris went on a boating trip. He never came back. An accident. Sudden. Unthinkable. Mark lost his business partner. Chris’s family lost a husband and father.
And the business was now in limbo.
The Problem No One Planned For
Mark now owned 50% of the business alongside Chris’s estate. Chris’s family needed money. Mark didn’t have the cash to buy them out. And Chris’s family had no interest in running an electrical business. Tension built quickly.
- Who makes decisions?
- How does the family get paid?
- Does the business need to be sold?
What had once been a strong, growing company was now at risk. Not because of poor business decisions but because of a conversation that never happened between Mark and Chris who were busy building a business and time with their families. And not by any of their professional advisers.
George had always done the right thing when it came to protecting their business assets. But this situation required something more. A different kind of protection. If this conversation had happened earlier, George could have guided Mark and Chris through a simple plan:
“What happens if one of you doesn’t come back to work?”
The Plan That Changes Everything
A properly structured buy/sell agreement, funded by life insurance. A simple strategy that would have ensured:
- The surviving partner receives full ownership
- The family receives immediate, fair value for their share
- The business continues without disruption
No uncertainty.
No financial pressure.
No conflict at the worst possible time.
The Outcome
Instead of chaos, there would have been clarity. Instead of stress, there would have been a plan.
Instead of risking everything they built, Mark could have focused on leading the business forward and Chris’s family could have been financially secure.
The Conversation Your Clients Trust You to Have
George, you’ve done the right thing by your clients. For years, you’ve protected their businesses with public liability, professional indemnity, management liability, commercial motor, tools, business packs. You’ve helped them manage risk, meet compliance requirements, and operate with confidence.
You’re not just their broker. You’re their trusted adviser.
If you run a General Insurance Brokerage and don’t have a Life Insurance Adviser, Surety Advisers partner with GI brokers to complete the solution for business and Life protection. Don’t miss the life assets in your customers businesses.
This article has used fictitious names and the business name has been changed for privacy. Based on a present client example in which the clients had no buy sell agreement and cover.
General Advice Warning
Any information provided is general in nature and does not take into account personal objectives, financial situation or needs. Personal advice can be provided through a licensed adviser where appropriate.
