Expert Advice

Volume 3, Issue 6,  August 2010

Hamilton Business Leader

There’s no insurance for a disabled business. The wrong insurance for an owner or key person can disable your business—and your future retirement. Here’s how we can fix this!Bob turned 56 this year. All was well until an accident, and Bob claimed benefits through WSIB. The problem with owning a business is—it’s in your heart and soul. So you won’t be surprised that Bob did as you and I would do: he phoned the office to keep in touch.
     Now WSIB has disqualified Bob from benefits because of simply calling the office. This would be strictly true with group Long Term Disability too. If only Bob had the right coverage he could work up to 20% and still claim 100% benefit (and it may cost less too).
     So three disabilities have hit! 1. Bob. 2. his business. 3. the retirement Bob and his wife were planning to start at age 60. All three are currently on shaky ground. If it were only Bob’s income at risk, he could survive that!
     Bob could probably take early retirement if everything else were okay. But Bob’s biggest loss is in the business. He is a central figure, and without him the business is partially disabled. Bob’s team had not yet put safeguards in place for this. 
     Behind the scenes WSIB is forcing Bob to sabotage the business—with silent neglect (not calling), or drawing salary when cash flow is down. Soon the clients, then the bankers, get worried, and even staff are going soft. It’s only a matter of time before the business faces the biggest threat of all time!  
     So how secure is Bob’s retirement and the dreams he and his wife have been planning? We already know the business was their retirement fund. If they could sell a healthy business, or draw dividends with continuing ownership, the future would be great! 
     With Bob’s accident, all is at risk. Business and retirement could both fail. Sale and succession could both fail. Current clients, advisors, and loyal staff are mired in uncertainty. 
     If there were an easy way to protect the value of all this, would you move forward now and avoid what happened to Bob and his team? Surely yes, if you respect the sacrifices you’ve already made in bringing your business to your current level of success!

1. Personal disability and illness coverage—and it may cost less than WSIB. This is vital and can often be very easy to get in place for you. 

2. Listen to your advisors as they bring ideas to strengthen your team against such misfortunes. The test of your ingenuity and business acumen is your business’ capacity to survive and grow without you for awhile.