As we wrap up 2019 and prepare for 2020, we want to share four ways corporately-owned insurance solutions can differentiate your practice, add new lines of revenue and make a big impact on the solutions you can present to affluent and high income markets. These corporate programs are utilized to insure a business owner's equity or the human capital one brings to an organization.
1. Accidental Death & Dismemberment: Accidental death and dismemberment insurance is an easy to place program when your clients' accident risk is heightened and traditional markets cannot or will not accommodate. The magnified awareness around a business trip to a global hot spot or the exposure that is created when a company loads their most valuable talent aboard a single aircraft often results in an insurance need being developed or uncovered with little notice. When these types of needs arise, the underwriting process migrates from the traditional life and disability insurance market to the playing field of high limit or specialized risk underwriters of a Lloyd's of London Coverholder.
2. Contractual Performance Indemnity: Used when a need is urgent to cover a contractual requirement typically found within a merger and acquisition or protecting a large loan. A contractual performance insurance solution is available 24-hours and worldwide. Benefits amounts can be up to $50 million per person.
3. Key Person Disability: For organizations with Key Executives who are vital to the financial success of their business, a corporately-owned Key Person Disability Insurance program is available with a policy structure that will provide the organization a benefit in the event their key person is injured or suffers an illness.
4. Buy-Sell Disability: For successful business owners maintaining a buy-sell agreement within their partnership, insuring the stock repurchase requirements in the event of a disability can prove challenging in US disability markets. US disability carriers provide this type of insurance up to a benefit maximum of roughly $2-3M per insured (this benefit varies across carriers and the state in which coverage is being issued). For business owners with additional Buy-Sell Disability funding requirements, a supplemental Disability Buy-Sell Insurance policy can be issued to reduce the business burden to repurchase a disabled partners equity beyond what is available from domestic carriers.
If you'd like to learn more about these products, we encourage you to watch our 30-minute webinar where Frank Zuccarello, Partner at Exceptional Risk Advisors, and Sean McNiff, VP of Business Development, share their knowledge and expertise in the space.