What Happens if Agency Owner Dies?

[bww143]

I apologize in advance, I don't want to sound morbid, but...

I have been in the P&C business for a few years. I work for an agency that is owned by one person. His wife has no part of the business.

My book is really starting to grow, I have a decent income now, and in several years should have a very good income. I have wondered what happens if the owner passes away or is permanently disabled?

The agency owns my book.

Has this happened to anyone? Am I able to get key employee insurance on the owner? What precautions should I take to protect myself?


Thanks,

 

[WinoBlues]

I apologize in advance, I don't want to sound morbid, but...

I have been in the P&C business for a few years. I work for an agency that is owned by one person. His wife has no part of the business.

My book is really starting to grow, I have a decent income now, and in several years should have a very good income. I have wondered what happens if the owner passes away or is permanently disabled?

The agency owns my book.

Has this happened to anyone? Am I able to get key employee insurance on the owner? What precautions should I take to protect myself?


Thanks,

Time to have a succession plan talk with him. However, I would have an exit plan in mind first.

Sole prop with an unlicensed spouse?

 

[Winter_123]

I work for an agency that is owned by one person. His wife has no part of the business.

,

"an agency that is owned by one person"

Most likely if the husband dies you will soon discover that you were working for an agency that had two owners.

 

[Gooner]

I have wondered what happens if the owner passes away or is permanently disabled?

Problem stands to reason that...If he passes away..he's dead. If he's permanently disabled...he's disabled.

 

[agentinsouth]

I apologize in advance, I don't want to sound morbid, but... I have been in the P&C business for a few years. I work for an agency that is owned by one person. His wife has no part of the business. My book is really starting to grow, I have a decent income now, and in several years should have a very good income. I have wondered what happens if the owner passes away or is permanently disabled? The agency owns my book. Has this happened to anyone? Am I able to get key employee insurance on the owner? What precautions should I take to protect myself? Thanks,

Have you asked? Most agency owners have thought about this and have a plan. My plan is well known.

 

[bobson]

Most agency owners have thought about this and have a plan.

I know more that don't have a plan.

 

[salesgirl]

His spouse will gain control and be given 6 months to obtain a license. I had a co-worker who died. His son was automatically given his commissions and he had 6 months to get licensed to take it over or sell it.

 

[somarco]

Most agency owners have thought about this and have a plan.

That runs counter to almost anything you can find from LIMRA.

We have a long time member of this forum that experienced this very thing (owner died) a few months ago. He may or may not reach out to you and share his experience.

Don't assume succession planning is in place and never assume you will be part of the picture when this happens.

 

[DS4]

I have wondered what happens if the owner passes away.....

Don't report the death.
Think, "Weekend at Bernies".

 

[xrac]

I apologize in advance, I don't want to sound morbid, but...

I have been in the P&C business for a few years. I work for an agency that is owned by one person. His wife has no part of the business.

My book is really starting to grow, I have a decent income now, and in several years should have a very good income. I have wondered what happens if the owner passes away or is permanently disabled?

The agency owns my book.

Has this happened to anyone? Am I able to get key employee insurance on the owner? What precautions should I take to protect myself?


Thanks,

If the owner dies and there is nothing in writing you are at the mercy of whomever takes over the agency: the spouse, a child, new owner, etc.