Contingent Liability Insurance
CONTINGENT LIABILITY INSURANCE
This product is taken out in the event of financing needed for the business. Contingent liability insurance refers to a policy taken out by a business on the life of a director or shareholder who stands surety for the debts of the business. The amount of cover taken out should be equal to the loan amount.
Benefits of the Contingent Liability Insurance Policy
This business policy insures the life of the guarantor who has signed surety
The amount of cover needs to be in line with the total debt
The policy should include life cover and disability
Policy premiums are paid by the business
An agreement is entered into whereby the business undertakes to utilise the proceeds to settle the outstanding debts
The personal estate of the surety is absolved from any liability
The personal estate of the guarantor is released from any liability
The proceeds will pay out tax-free as the policy is made non-conforming (non-tax-deductible).
If the insured dies during the policy period, the cost of continuing with the business after his/her death is covered by the life insurance company
How it Works
In the event of the guarantor dying or becoming disabled (depending on the original cover chosen) the debt will be paid in full by the proceeds received by the business from the insurance policy paid out.
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I.H.S. offers a variety of insurance-related services including:
Key Man Insurance Policies
This product is beneficial to individuals whose business would suffer if a Key Person associated with it were to die or be disabled and unable to continue as an employee of the company.
Buy-Sell Insurance Policies
This product enables business owners to protect themselves in the event of a change in ownership or partnership, as a result of the death, disability, or resignation of a shareholder.
Contingent Liability Policies
This product is purchased in the event of financing needed for the business. This could be as a result of expansion or purchasing of a large asset by the business. It could be also be necessary at the time of purchasing the entity.
What Our Clients Say About I.H.S
This is just a small sample of our clients’ testimonials! If you are interested in any of the business insurance packages that IHS offers, please contact us at 010 591 2492.
I.H.S. has provided business insurance for me and my partner's stores. Brian was very friendly and helpful! The good thing about I.H.S. is that they are fast, efficient, and reliable - I can always count on them to get the job done. They handle all of our insurance needs, which means we don't have to worry about a thing!
When I was looking for a business insurance broker to help me with my policy, I talked to several different firms. It quickly became clear that Brian at I.H.S. was the best choice. He has a huge amount of experience and knows what he is talking about - it's very easy to see why he is the best business insurance broker in South Africa.
I.H.S. has been a lifesaver for my business! When no other insurance broker could help me, Brian was able to provide me with a comprehensive policy that fully protects my business. I have a strong piece of mind knowing that if something were to happen, the business will move into its next chapter.