Business Protection Risk Checklist

A profitable business may still depend heavily on one owner or essential employee. Use this educational checklist to identify where an unexpected death or extended absence could affect revenue, client relationships, daily operations, financing, or succession planning.

Dwight Hendricks — Individual North Carolina-Licensed Life & Health Insurance Producer

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0 of 20 Answered
0 No
0 Unsure

Select answers below to see your summary.

Section 1: Key-Person Dependency

Is business revenue spread across enough people that losing any one person would not cause a major financial disruption?

Are essential client and vendor relationships documented and shared with more than one responsible person?

Is specialized knowledge and institutional know-how documented and accessible to others who would need it?

Could daily operations continue at an acceptable level during the extended absence of any one person?

Are major projects and growth plans documented and structured well enough to continue despite the unexpected absence of any one person?

Section 2: Replacement Difficulty

Has the business identified who would assume the person's duties temporarily?

Has the business estimated how long recruiting a qualified replacement would likely take?

Has the business estimated recruiting, training, and lost-productivity costs?

Could the remaining staff maintain service levels during the transition?

Are critical responsibilities documented well enough for another person to assume them?

Section 3: Financial Continuity

Could the business continue paying payroll, rent, debt, and operating expenses?

Is sufficient cash available for an extended transition period?

Has the business identified and planned for how the loss of a key person could affect financing, credit relationships, or expansion plans?

Has the business documented and developed plans for obligations or guarantees that are dependent on a specific owner?

Has the business estimated the financial effect of interrupted revenue during a transition?

Section 4: Ownership and Succession

Is there a written business-continuity or succession plan?

If there are multiple owners, is there a current buy-sell agreement?

Is there a documented process for transferring ownership?

Have funding arrangements been reviewed recently?

Do family members, partners, or key employees understand the continuity plan?

What Your Answers May Reveal

Questions marked No or Unsure may identify areas where additional documentation, emergency planning, succession preparation, or financial protection could be useful. The checklist does not determine whether a particular insurance product is appropriate for your situation.

A business-protection review may consider:

  • Revenue dependency on one owner or key employee
  • Estimated replacement time and associated expense
  • Client and vendor continuity during a transition
  • Ownership transition and succession documentation
  • Existing agreements and their current funding arrangements
  • Whether life insurance options should be reviewed based on the business's specific circumstances and planning objectives

No checklist can evaluate a complete business situation. Consulting legal, tax, financial, and insurance professionals who understand your specific circumstances is appropriate before making any planning decisions.

Request an Educational Business Protection Review

A review begins with the people, responsibilities, and financial exposures that affect your business — not by assuming that any particular product is the right answer.

Request a Business Protection Review

Or call directly: (919) 473-3754

Dwight Hendricks is an individual North Carolina-licensed life and health insurance producer (License #20792434). Information on this page is provided for educational purposes only and does not constitute legal, tax, financial, underwriting, or insurance advice.

Coverage availability, premiums, policy terms, and underwriting decisions depend on the carrier, product, and individual circumstances. No coverage is offered or bound on this page. Completing this checklist does not create an obligation or imply eligibility for any insurance product. No specific insurance product is appropriate for every business situation.

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