Key Coverages for Vegan Business Owners Part 2

In our last post, we discussed some of the key coverages that played a significant role in attracting and retaining the employees who work hard for you. This time, we’re going to explore the important policies that benefit business owners and corporations as part of a comprehensive Vegan Insurance Program. Speak with your trusted insurance professional today to ensure your operation is secured with the following policies.

 

Deferred Compensation

According to Investopedia, an employee may opt for deferred compensation because it offers potential tax benefits. In most cases, income tax is deferred until the compensation is paid out, usually when the employee retires. If the employee expects to be in a lower tax bracket after retiring than when they initially earned the compensation, they have a chance to reduce their tax burden. Roth 401(k)s are an exception, requiring the employee to pay taxes on income when it is earned. If the employee believes they are going to be in a higher tax bracket upon retiring, this might be preferable. They are broken down into two categories:

 

Qualifying Deferred Compensation: Qualified deferred compensation plans are pension plans governed by the Employee Retirement Income Security Act (ERISA), including 401(k) plans, 403(b) plans and 457 plans and employers must offer this to all employees, excluding independent contractors, says the article.

Nonqualifying Deferred Compensation: Also known as 409 (a) plans, these do not have to be offered to all employees and there is no cap on contribution amounts.

 

Disability Overhead Insurance

This policy will keep your business up and running in the event you suffer a debilitating injury. It will provide monthly payments to your business for a specified amount of time to keep it afloat and pay expenses while you’re out. This coverage is ideal for covering the overhead operating costs and giving peace of mind to your creditors, investors, and employees.

 

Buyout Coverages

In the event of a claim, the insurer and the policyholder typically both have the goal in mind- settling the case quickly to prevent damage to the business’ reputation and reducing legal costs. However, in the event that both parties do not see eye to eye and the policyholder does not agree with the terms of the settlement, buyout settlement clauses allow the insurer to remove itself from defending against the claim, thereby turning over the defense against the claim to the policyholder. To remove itself from further defense of the policyholder, the insurer will “buy out” by providing to the policyholder, the amount of the claim settlement that it negotiated, explains Investopedia.

While the policyholder does run the risk of exceeding the amount provided by the buyout by continuing in court, they could also benefit by receiving more than the initial settlement amount.

About Vegan & Animal Professionals Insurance Agency

At Vegan & Animal Professionals Insurance Agency (VAPI), we specialize in providing quality solutions for vegan businesses of all kinds. We pride ourselves in supplying superb customer service paired with comprehensive and customizable solutions. We will be happy to discuss how your business can provide the necessary coverages to protect your key employees while also benefiting your business. For more information, contact our experts today at (866) 599-8182.