Why Business Insurance Is a Critical Component of an Estate Plan

Paul B. Kieffer, CPA/PFS, CFP, CLU, CAP, ChFC

When CPAs have individual clients who are business owners, it is important to remember that they have worked very hard to build both their business and their personal estate. Many business owners focus the majority of their time on building the business and do not think about the various risks that could significantly diminish the value of their business and personal estate or net worth. While estate taxes often come to mind when thinking about such risks, other, unknown risks in the business itself could destroy an even larger portion of the estate. A critical element when creating an overall estate plan is a business insurance review to ensure that both known and unknown risks are identified and properly insured against.