BGES Group Insurance

Can your Business Survive with the Loss of a Key Employee?

BGES Group Insurance

In today’s economy, this is becoming the most important question a small business can ask. And they may need to determine the answer to this question sooner rather than later.

“Take away all my factories and my equipment. Take away my wealth. But leave me with my key people and in a short time I’ll have it all back again.” – Attributed to Andrew Carnegie

Many business owners define “key” people based on:

  • High Salary – High value put on employee

  • Decision-making power – Control business direction

  • Frequent direct client contact – Substantial power base: the relationships that business success depends on.

  • Crucial position – Product development, production, technology or sales.

  • Special talents – Difficult to replace.

  • And of course, in the vast majority of businesses, the owner who is involved in day to day operations may be the most important employee of all.

What impact would their loss have on the business?  What would be the economic impact if key Employees suffer a disability?

Employees that offer unique contributions desire unique rewards.  However, individual benefits will have an even greater impact on the high performer. The truth is that bonuses are expected, and when paid are quickly spent and forgotten.  Benefits, on the other hand, can last a lifetime.

These benefits can be accomplished by using strategies that are not directly regulated by the federal government and fall outside the auspices of ERISA.  Unlike IRAs or 401k programs, these strategies don’t limit the level of funding.

Disability Benefit Plan 

This type of plan allows the small business owner to pay a bonus to an employee that is used to fund valuable insurance coverage for them and their family, and is a tax deduction for their business.

  • Your key employee receives much-needed disability insurance coverage at little or no cost

  • You can pick and choose to whom this benefit would be offered and at what level

  • No administrative or government reporting costs

The employer pays a bonus to the employee.  The bonus is deductible to the employer and taxable to the employee.  The employee maintains all the rights associated with owning a disability benefit.

What will happen to the business if the partner becomes disabled?

Today, there are cost effective ways to protect a business from these events that threaten their long-term profitability.

What will happen to the business if one of the small business owners were to become disabled?

If a business owner is unable fulfill their management responsibilities…The remaining disabled owner’s family, or partners and shareholders, arrive at a serious crossroads in the life of the business.

What is the next step?

You will need to acquire some additional details to begin designing a custom plan that does the best job of solving the unique needs of your small business. Talk to your trusted advisor today so you can protect tomorrow’s business.


BGES Group’s office, located in Larchmont, NY is a full service insurance agency offering, Property, Liability, Umbrella Liability, Business Auto, Bid & Performance Bonds, Inland Marine, Funding for the Construction Industry, Worker’s Compensation, New York State Disability, Group Health, Life insurance and Personal lines.

BGES Group are Worker’s Compensation Specialists for the States of New York, New Jersey and Connecticut – Issues we address: 1) Lowering pricing – we have specialty programs that can save you up to 40%; 2) Finding a new company; 3) Being cancelled or non renewed; 4) Audit disputes; 5) Company creating fictitious payroll at audit time; 6) Lowering high experience modifications factors; 7) Misclassification of payrolls; 8) Lowering or eliminating renewal deposits;   9) Getting coverage when you’ve been without for a few months; 10) Covering multiple states under one policy; 11) Eliminating 10% service or policy fees; 12) Timely issuance of certificates; 13) Always being able to get someone on the phone or by email when you need to.

Special Contractor Insurance Programs (NY, NJ, CT) – We we have 50+ insurance companies to market your general liability, umbrella liability, business auto, workers compensation, bid & performance bonds and group health coverages.  We help contractors set up proper risk transfer mechanisms.  If you’re a contractor we offer extensive information about insurance markets, coverages, risk transfer mechanisms, subcontractor screening, ways to lower your insurance costs that lower them.

New Jersey and Connecticut Contractors:  We have a fiercely competitively priced (savings up to 50%)  General Liability, Umbrella Liability, Business Auto, Workers Compensation program.  Want to lower these costs?  Get a quote today!

If you would like to speak with us call Gary Wallach at 914-806-5853 or click here to email or click here to visit our website. or

Company: BGES Group, 216A Larchmont Acres West, Larchmont, NY 10538


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