Safeguard your business from illness, death or sudden exit

Your business may be your greatest asset – but what happens if something unexpected pulls you or a key partner out of the picture?

For many high-income business owners, their business isn’t just a source of income – it’s their legacy, their family’s future, and their most valuable asset. Yet too often, structures are informal or outdated, and the impact of illness, disability, or death isn’t considered until it’s too late.

Whether you’re a sole trader, business partner or company director, now is the time to ensure your business is protected from sudden disruption.

Why succession and continuity planning matters

Most private businesses rely heavily on one or two key people – often the founders or senior executives. If one of these individuals is unexpectedly unable to work due to illness, injury or death, the financial and operational impact can be severe.

In some cases, the business may not survive.

That’s why business continuity planning is so important. It ensures:

• Your ownership structure is clearly documented
• Succession pathways are agreed upon
• Appropriate insurance funding is in place
• Business operations can continue with minimal disruption

What is a buy/sell agreement – and why it matters

A buy/sell agreement is a legal document that outlines what happens to each owner’s share of the business in the event of death, disability, divorce or voluntary exit. It allows the remaining owner(s) to buy out the exiting party’s interest under pre-agreed terms – reducing the risk of legal disputes, rushed decisions or third-party interference.

Without a buy/sell agreement:

• Family members may become unintentional business partners
• Disagreements can escalate to costly litigation
• The business’s continuity, valuation and profitability may suffer

A strong succession plan, supported by a funded buy/sell agreement, brings structure and clarity when it’s most needed.

The role of insurance in protecting your business

Even the best agreement is ineffective without the money to fund it. That’s where insurance plays a critical role.

Key covers include:

• Life insurance – provides funds to buy out a deceased owner’s share
• TPD and trauma cover – helps facilitate ownership transitions due to illness or disability
• Key person insurance – protects revenue or business value if a crucial contributor can no longer work
• Business expenses insurance – covers fixed operating costs if the owner is temporarily incapacitated

These covers ensure the business remains operational and financially stable – buying time to make strategic decisions rather than reacting under pressure.

Real-world example: Gary & George’s catering business

Gary and George owned a successful catering business generating over $3.5 million annually. When Gary suffered a heart attack and chose to step away from the business, their pre-arranged buy/sell agreement – funded by insurance – came into play.

George was able to purchase Gary’s share without delay or stress. The business remained profitable, their friendship remained intact, and Gary transitioned into retirement with financial security.

Is your business protected against the unexpected?

Many business owners have not reviewed their agreements or insurance since the early days – or never had them in place to begin with. If your current structure doesn’t address what happens if you or a partner can no longer contribute, now is the time to act.

At Lume Wealth, we specialise in working with high-income business owners to:

• Identify gaps in continuity planning
• Structure and document appropriate buy/sell agreements
• Set up cost-effective insurance to fund future transitions
• Align your personal wealth goals with your business strategy

Don’t leave your business – or your family’s future – exposed

Your business deserves more than good luck. With the right plan in place, you can protect what you’ve built and make sure it continues to support your family, employees and legacy, no matter what happens.

📩 Get in touch for a confidential chat – no pressure, just smart planning.