Northwestern Mutual publishes small business preparedness checklist

Financial security company Northwestern Mutual is equipping business owners with ‘Protecting People and Property,’ a two-pronged financial preparedness strategy guide encouraging business owners to secure human assets and physical assets before emergency situations arise.

"Many owners insure their property without hesitation but don't think about protecting their most valuable asset: their workforce," said Jane Ann Schiltz, Northwestern Mutual, vice president of business markets. "Owners should consider how to protect both."

The guide encourages business owners to:

Secure human assets

- Protect the owner: many businesses rely heavily on owners to survive and thrive. Yet many owners can't imagine what would happen if they suddenly couldn't work due to an illness or accident. Disability insurance coverage can provide benefits to help keep a business operating with minimal interruptions.

- Protect key contributors: a business' success is often based on a select group of employees. The disability or death of one of those key contributors could be devastating to productivity, credit rating, customer relations and business continuity. Key contributor disability income insurance and life insurance provide the income and assets needed to strengthen cash flow, hire and train a replacement, and assure creditors of business continuity.

- Improve retention with protection: employees are arguably a small
business' most important asset. Owners may enhance employee retention efforts by providing protection. Offering employee benefits – group health insurance, group life insurance, retirement savings, disability income protection and long-term care coverage - can keep employees committed to a business, help them secure protection needed for unforeseen circumstances and provide resources needed for retirement.

- Find success with succession: business owners don't live forever, so a continuation plan is critical to keep a business flourishing from one owner to the next. A written and properly funded buy-sell agreement creates a market for business interests, provides mutually agreeable terms of sale, facilitates a smooth transition of management, and assures creditors of business continuity.

- Access to emergency funds: in a disaster, gaining access to financial resources can be crucial. Business owners who own permanent life insurance policies build equity over time as they pay premiums. This cash value can be accessed for emergency situations, for business needs, or used as collateral for a loan, helping owners maintain their financial security in the aftermath of a disaster.

Secure physical assets

- Ensure that you will have access to materials from suppliers that may also be enduring a disaster

- Insure buildings and equipment

- Maintain emergency response equipment

- Prepare for a prolonged power outage.

To view the ‘Protecting People and Property’ strategy guide go to http://www.northwesternmutualnews.com/file.php/240/73-0081.pdf