Business Protection Plan for Partnership Firms

Unlike Ltd Companies risks associated with partnership firms are unlimited as all partners are jointly and severally liable for all acts omissions and commission.

What are the Critical risks associated with partnership firms?

partner

What happens when suddenly a key partner goes out of the scene by an act of God?

Following situation may arise.

1) In the absence of key partner/s the growth of the company retards as there is a huge void in operating skills in running a business.

The remaining partner/s is unable to cope up with the new situation hence the growth of the company goes very rapidly into a negative direction.

2) The members of the family of a deceased partner shows disinclination to continue as a new partner in the firms and logically demand their share in the business plus Goodwill with a view to retire from the business.

Under both the scenarios firm needs a large amount of cash in order to meet with the revised situation peacefully

Solutions

We provide business protection to a running profit making partnership firm to meet with above situations.

How does it work?

All KEY partners are insured for a particular amount of sum based on valuation of the business.

In the unfortunate event of a death of any key partner/s firm gets a large amount of cash which could be utilized to face the critical scenario arising out of changed situation as mentioned earlier ,

Beside the entire premium will be paid by the firm and will treated as business expense u/s 37(1) Of IT act 1962

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s