Business solutions to make you better
Explore the new options available today
Business solutions to make you better
Explore the new options available today
Supply Chain Insurance
Livery Auto Insurance
Pandemic Insurance
Product Recall Insurance
Cyber Liability Insurance
Directors & Officers
Business Interruption
Employment Practices Liability
Terrorism Coverage
Civil Authority Actions
Environmental Liability
Long Haul Trucking
IP Insurance
Fidelity Insurance
Multi Unit Buildings
Reputational Risk Insurance
Insurance for your business, no matter what you do
We provide tailored insurance solutions for businesses operating across a diverse range of industries. As independent brokers, we deliver more than standardized products; our strategic and customized approach is specifically designed to address the distinct risks and operational structure of each client.
With access to both standard and specialty markets, we are equipped to secure comprehensive coverage and competitive pricing, even for nontraditional or hard-to-place risks. We routinely support businesses with unique exposures—those often underserved by conventional carriers.
Clients work directly with seasoned advisors who understand the regulatory, operational, and financial factors shaping business risk. We coordinate with your legal and tax professionals to ensure our strategies are fully integrated, and our expertise in investment and retirement products enables gives us a more comprehensive approach to asset protection and risk mitigation. Protecting what you built is the best way to set you up for the next phase of your business.
General Liability
Insurance
Reliable coverage for everyday vehicles, ensuring your Peace of Mind on the road
Commercial Property
Coverage
Comprehensive protection for your ride, keeping you safe on every journey
Commercial Auto
Insurance
Agreed value policies for boats and other watercraft ensuring you will be fully indemnified.
Workers Compensation
Insurance
Liability and physical damage coverage for RV's, campers, motor homes, ATVs, and quads
Professional
Liability
Coverage for classic and collector cars, with guaranteed value protection against total losses
Business Tools & Personal Property
Coverage for track cars, street legal race cars, and single event track day insurance
Builders Risk
Insurance
Coverage for vehicle like retired jeeps and tanks, with flexible usage and guaranteed value protection
Commercial Liability
Umbrella
Tailored coverage for hot rods, classic restorations, Pro Street vehicles and custom cruisers
Employer Sponsored Retirement Plans That Work
A traditional 401(k) plan is a tax-advantaged retirement savings option offered by employers, allowing employees to contribute a portion of their salary on a pre-tax basis. These contributions reduce the employee’s taxable income, providing immediate tax savings, while the funds grow tax-deferred until withdrawal in retirement. Employers often match a portion of employee contributions, making it an attractive benefit for participants looking to maximize their retirement savings.
Investment options typically include a mix of mutual funds, index funds, and target-date funds, giving employees flexibility to tailor investments to their goals and risk tolerance. Annual IRS contribution limits allow significant savings, with catch-up contributions for those aged 50 and older. Withdrawals are taxed as ordinary income, and early withdrawals before 59½ may incur penalties, though exceptions exist for hardships or medical expenses. Required minimum distributions (RMDs) begin at age 73.
We customize 401(k) plans to meet the unique needs of businesses and employees. Options such as loan provisions, in-service withdrawals, and strategic employer matches are tailored to maximize benefits for both owners and employees. These customizations ensure employees achieve their savings goals while owners benefit from a flexible, tax-efficient plan that supports overall business objectives.
A Roth 401(k) plan is a tax-advantaged retirement savings option that allows employees to contribute after-tax dollars, with qualified withdrawals in retirement being completely tax-free. Unlike Roth IRAs, Roth 401(k)s have no income phase-outs, enabling high earners to participate. Additionally, contribution limits for Roth 401(k)s are significantly higher than those for Roth IRAs, allowing employees to invest larger amounts in a tax-free growth vehicle.
Employers can match contributions, though these are made on a pre-tax basis and grow in a separate account. Participants can also benefit from the flexibility of in-service withdrawals, loan provisions, and strategic plan designs tailored to meet the needs of both employees and business owners. Roth 401(k) plans are ideal for individuals looking to maximize tax-free retirement income while enjoying higher contribution limits and inclusive eligibility.
A SIMPLE 401(k) is a retirement plan designed for small businesses with 100 or fewer employees, offering an easy-to-administer option for both employers and employees. Contributions are made pre-tax, lowering employees’ taxable income, while funds grow tax-deferred until withdrawn in retirement. Employers must either match employee contributions dollar-for-dollar up to 3% of their salary or make a non-elective contribution of 2% for all eligible employees, regardless of their participation. Employees can contribute up to $15,500 annually (as of 2024), with an additional $3,500 catch-up contribution for those aged 50 and older. A SIMPLE 401(k) includes features such as loans and in-service withdrawals, which are not available in other SIMPLE plans, making it a more versatile option for businesses seeking flexibility.
A SIMPLE IRA is another retirement plan option for small businesses, offering a straightforward and cost-effective way to provide employee retirement benefits. Employers are required to either match up to 3% of employee contributions or contribute a non-elective 2% of each eligible employee's salary. Employees can contribute up to $15,500 annually (as of 2024), with an additional $3,500 catch-up contribution for those 50 and older. Unlike a SIMPLE 401(k), loans are not permitted, and the plan is subject to stricter early withdrawal penalties within the first two years. SIMPLE IRAs are easier to set up and administer compared to SIMPLE 401(k)s, making them ideal for businesses seeking minimal complexity.
A Safe Harbor 401(k) plan is designed to ensure compliance with IRS non-discrimination testing, allowing all employees, including highly compensated ones, to maximize contributions without the risk of failing compliance tests. Employers must make mandatory contributions using one of the following options:
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- Basic Match: Matching 100% of the first 3% of salary deferred plus 50% of the next 2%.
- Enhanced Match: Matching 100% of the first 4% of salary deferred.
- Non-Elective Contribution: Contributing 3% of salary to all eligible employees, regardless of participation.
These contributions are immediately vested, making them a valuable benefit for employees.
Safe Harbor plans are commonly used to help lower-earning employees receive employer contributions, even when their deferrals might otherwise disqualify them due to testing requirements. At the same time, they allow business owners and key employees to maximize their accounts without being constrained by IRS limits. Employers can also include flexible features like loans, Roth contributions, and profit-sharing to enhance the plan’s appeal.
By ensuring equitable benefits for all employees and providing owners with the ability to maximize their own retirement savings, Safe Harbor 401(k) plans are an effective tool for fostering financial security, attracting talent, and simplifying administrative compliance.
A Solo 401(k), or one-participant 401(k), is a retirement plan designed for self-employed individuals or business owners with no employees other than a spouse. It offers flexibility and high contribution limits, making it a powerful tool for entrepreneurs, freelancers, and small business owners.
Participants can contribute to a Solo 401(k) in three ways:
1.Employee Contributions: As the employee, the business owner can defer a portion of their compensation, up to the annual IRS limit.
2.Employer Contributions: As the employer, the business can contribute up to 25% of the owner's compensation.
3.Profit Sharing: The business can add an additional contribution through profit sharing, further increasing the retirement savings potential.
This three-pronged approach allows individuals to maximize their contributions, often exceeding the limits of other retirement plans. Solo 401(k) plans also offer Roth contribution options for after-tax savings with tax-free withdrawals in retirement.
An additional benefit is the ability to take loans from the plan, providing access to funds for personal or business needs, as long as repayments are made on time. Solo 401(k)s also avoid complex compliance requirements like non-discrimination testing, making them easy to manage.
For self-employed individuals seeking to maximize retirement savings and enjoy significant tax advantages, a Solo 401(k) is an ideal, cost-effective solution.
A SEP IRA (Simplified Employee Pension Individual Retirement Account) is a retirement savings plan primarily intended for self-employed individuals and small business owners. It enables employers to make tax-deductible contributions to individual retirement accounts on behalf of eligible employees, including themselves. With minimal administrative requirements and no annual IRS filings, SEP IRAs are easier to manage than many other retirement plans, making them especially appealing to small businesses seeking a streamlined approach to employee benefits.
Only employers can contribute to a SEP IRA—employees cannot make their own contributions. These employer contributions are discretionary each year and can vary based on business performance, offering valuable flexibility for companies with unpredictable income. Employers can contribute up to a set percentage of an employee’s compensation, subject to annual IRS limits. All contributions are tax-deferred, meaning they grow tax-free until withdrawn, typically during retirement, at which point they are taxed as ordinary income.
A notable update to SEP IRAs now allows for Roth contributions, meaning employers can choose to contribute after-tax dollars. These Roth contributions can grow and eventually be withdrawn tax-free, provided certain eligibility conditions are met. However, not all custodians support Roth SEP IRAs yet, so employers should check with their plan provider to ensure compliance and proper setup before making Roth contributions.
Power your business with life insurance
Key Person Insurance
Key person insurance is a crucial financial tool designed to protect businesses from the potential loss of an essential employee. This type of life or disability insurance is purchased by the company to cover an individual whose skills, knowledge, or leadership are vital to its operations. In the event of the key person’s death or disability, the policy provides a payout to the business, helping to offset financial losses, maintain stability, and fund critical needs during a challenging time.
Ownership and control of the policy provide the company with long-term financial benefits. As the policyowner, the company has full control over the policy, including decisions about cash value access, premium payments, or continuation of coverage, regardless of the employee's employment status. If the policy is a permanent life insurance product, such as whole life or indexed universal life (IUL), it builds cash value over time. The company can access this cash value through loans or withdrawals, offering liquidity for operational needs or other investments.
Even if the employee leaves or is terminated, the policy remains in force as long as the company continues paying premiums. Upon the insured’s death, the business receives the death benefit, providing a significant revenue flow that can support long-term financial stability. Additionally, key person insurance reassures stakeholders and investors of the company’s resilience, ensuring confidence in its ability to manage unexpected challenges effectively.
Buy/Sell Agreement Funding
Buy-sell agreement funding is a crucial strategy for ensuring business continuity and protecting ownership interests in the event of an owner's death, disability, or retirement. This type of planning uses life insurance or disability insurance to provide the funds necessary to execute a buy-sell agreement, ensuring a smooth transfer of ownership and financial stability for the business.
There are two primary types of buy-sell agreements: cross-purchase and entity purchase. In a cross-purchase agreement, the remaining owners individually purchase the departing owner’s shares using funds provided by life or disability insurance policies they own on each other. In an entity purchase agreement, the business itself owns the policies, and the company buys back the departing owner’s interest. Both structures ensure that the departing owner’s family or estate is compensated fairly while maintaining the business's financial health.
One key advantage of buy-sell funding is its flexibility. It prevents revenue or control from being redirected to an owner’s spouse or family after their death, which may not align with the business’s goals. Instead, life insurance proceeds provide liquidity to purchase the shares, ensuring ownership remains with the remaining partners or the entity.
By funding a buy-sell agreement with life insurance, businesses can plan for a seamless transition, protect relationships among owners, and avoid financial strain. This strategy ensures business continuity while safeguarding the financial interests of all parties involved.
Executive Bonus 162 Plans
An Executive Bonus 162 Plan is a tax-efficient strategy that enables businesses to reward and retain key employees by funding life insurance policies. This plan works well for C-corporations, S-corporations, LLCs, and partnerships, particularly those seeking a straightforward, customizable alternative to traditional qualified plans like 401(k)s.
How It Works:
The employer pays the premiums for a life insurance policy owned by the key employee. The payments are treated as a bonus and are tax-deductible for the business under IRS Code Section 162. Employees pay income tax on the bonus, but many companies offer a "double bonus" to cover the tax liability. The policy provides a death benefit to the employee’s beneficiaries and, if permanent (e.g., whole life or indexed universal life), builds cash value over time that the employee can access for personal needs.
Unlike ERISA-governed plans, such as 401(k)s, this plan allows employers to reward employees with complete discretion, without needing to offer equal benefits to all staff members. This flexibility is particularly advantageous for recognizing and retaining top performers or key executives.
Advantages:
- Tax Benefits: Premiums are deductible for the business, offering immediate tax savings.
- Employee Ownership: The employee owns the policy, retaining its value even after leaving the company.
- Simplified Administration: The plan avoids the complex compliance requirements of ERISA plans.
An Executive Bonus 162 Plan provides a versatile and efficient solution for businesses to incentivize their top talent while maintaining tax advantages and operational flexibility.
Employer-Funded Employee-Owned Life Insurance Plans
Life insurance plans purchased for employees, funded by the employer but owned by the employee, offer a unique and discretionary benefit for businesses looking to reward and retain key talent. These plans allow employees to choose their beneficiaries and maintain full control over the policy, providing them with a personalized and valuable financial safety net.
Unlike ERISA-governed plans, this approach gives employers the flexibility to offer these benefits selectively, focusing on top performers or employees in critical roles without extending the same offering to all staff. This makes it an excellent tool for businesses seeking to provide preferential treatment to attract and retain high-value employees.
The business funds the premiums, which are treated as taxable income for the employee. However, the policy's cash value (if permanent insurance, such as whole life or indexed universal life) and death benefit belong entirely to the employee, offering both immediate and long-term benefits. Employees gain financial security for their families while building potential cash value they can access during their lifetime.
This structure is straightforward for businesses to implement, with minimal administrative requirements. It also fosters loyalty and satisfaction among employees who receive this benefit, positioning the company as an employer of choice for top-tier talent.
Defined Benefit Plans
Defined benefit plans are powerful retirement strategies that guarantee a specific retirement benefit for participants, making them particularly attractive for business owners and highly compensated employees. When life insurance is incorporated into these plans, employers not only provide valuable financial protection for participants but also unlock significant tax advantages for the business.
Employers funding a defined benefit plan can claim substantial tax deductions, often exceeding $100,000 annually, depending on the plan’s structure and the ages and compensation of participants. These contributions, used to fund the plan, are considered a legitimate business expense and are fully deductible, reducing the company’s taxable income.
Incorporating life insurance into the plan enhances its value. A portion of the contributions is allocated to life insurance policies, which provide death benefits to participants’ beneficiaries. This creates additional financial security for participants’ families while keeping the business aligned with its financial goals. The cash value of permanent life insurance policies (e.g., whole life or indexed universal life) grows tax-deferred, offering a potential future source of liquidity within the plan.
Defined benefit plans with life insurance are especially beneficial for businesses with steady cash flow and owners seeking to maximize retirement savings and tax deductions. This combination provides guaranteed retirement income, significant tax relief for the business, and peace of mind for participants and their families. By leveraging life insurance within the plan, employers can amplify the benefits for themselves and their valued employees.
Business Debt Coverage
Life insurance can be a critical tool for safeguarding a business against financial strain caused by outstanding debts in the event of an owner’s or key person’s death. By using life insurance for business debt coverage, companies ensure that loans, credit lines, or other liabilities are fully or partially covered, protecting the financial stability of the business and its stakeholders.
A life insurance policy, either term or permanent, is purchased on the life of the business owner or key individual, with the business named as the beneficiary. If the insured passes away, the death benefit provides immediate liquidity to pay off outstanding debts, such as equipment loans, commercial mortgages, or SBA loans. This eliminates the risk of creditors seizing business assets or leaving surviving partners with the burden of repaying the debt personally.
For businesses structured with partners or co-owners, this strategy can be paired with a buy-sell agreement to ensure both debt repayment and smooth ownership transitions. The premiums paid for such policies are generally not tax-deductible, but the death benefit is received tax-free by the business, providing a significant financial cushion.
Using life insurance for debt coverage offers peace of mind by ensuring that the company’s financial obligations are met, preventing disruptions and protecting the future of the business, its employees, and its owners.
Estate Planning
Life insurance is a powerful tool in the estate planning strategies of business owners, providing liquidity and financial security to address challenges that arise when transferring business assets. By incorporating life insurance into estate planning, business owners can ensure a smooth transition of their business and minimize the financial strain on heirs.
One of the primary uses of life insurance in estate planning is to provide liquidity for paying estate taxes. For business owners with illiquid assets, such as real estate or a privately held company, the death benefit from a life insurance policy ensures that heirs have funds to cover estate taxes or settle debts without needing to sell the business or other valuable assets. This protects the integrity of the business and its future operations.
Life insurance is also commonly used to equalize inheritance among heirs. For example, if one child plans to inherit the business while others do not, a life insurance policy can provide a death benefit to non-involved heirs, ensuring fairness and avoiding conflicts within the family.
Additionally, life insurance can fund buy-sell agreements, ensuring that ownership transitions smoothly to remaining partners or family members, or it can support wealth transfer strategies to pass down assets tax-efficiently through irrevocable life insurance trusts (ILITs).
By securing life insurance, business owners can create a comprehensive estate plan that preserves their legacy, protects their family’s financial future, and ensures the continued success of their business.
Collateral Assignment
Life insurance with a collateral assignment is a strategic way for business owners to secure loans or credit lines while protecting both the lender and the business. Under this arrangement, a life insurance policy is used as collateral for a loan, providing the lender with assurance that the loan will be repaid if the borrower passes away during the loan term.
With a collateral assignment, the borrower (business or individual) purchases a life insurance policy, naming themselves as the owner and their beneficiaries as the primary recipients. The lender is listed as an assignee, granting them rights to the death benefit up to the outstanding loan amount. If the borrower dies, the lender is paid first, and any remaining funds from the policy go to the designated beneficiaries, such as family members or business partners.
This strategy is commonly used for SBA loans, commercial real estate financing, and large equipment purchases. It not only satisfies lender requirements but also provides additional financial security for the borrower’s family or business. Premiums for the policy are typically not tax-deductible, but the death benefit is received tax-free, ensuring the loan can be repaid without creating a tax burden.
Using life insurance for collateral assignment ensures that financial obligations are met, helps secure critical funding, and provides peace of mind for both the lender and borrower, ensuring the long-term stability of the business.
Supplemental Executive Retirement Plan
A Supplemental Executive Retirement Plan (SERP) is a non-qualified deferred compensation plan offered by employers to provide additional retirement income for key executives. Unlike qualified plans such as 401(k)s, SERPs are not subject to strict IRS contribution limits or non-discrimination rules, making them highly customizable and an effective tool for rewarding top executives.
SERPs are typically funded entirely by the employer and are designed to bridge the retirement income gap by supplementing other retirement benefits. They can include features like fixed payouts, percentages of final compensation, or performance-based incentives. The plan can be structured to provide a pre-determined benefit upon retirement, disability, or death, ensuring long-term financial security for the executive and their family.
One of the distinguishing characteristics of a SERP is that it remains an unfunded obligation of the company, meaning the funds are not set aside in a separate account but are paid out of the company’s general assets. This structure can help align executive performance with the company’s long-term success, as benefits are often tied to employment tenure or specific performance goals.
SERPs are an excellent tool for businesses to attract and retain top talent while ensuring executives have robust retirement benefits tailored to their unique compensation and planning needs.
While not as common, split-dollar agreements can sometimes complement a SERP if life insurance is used as the funding vehicle. For example:
- A permanent life insurance policy (e.g., whole or indexed universal life) may be purchased, and the employer and employee share the costs and benefits based on the agreement.
- The death benefit can secure both retirement income for the executive and repayment of the employer’s contributions or obligations in the plan.
- This can provide an additional layer of flexibility, allowing the employer to maintain some control over the policy’s value while incentivizing the executive with substantial retirement or death benefits.
Is a variable annuity right for you?
A tax deferred - variable annuity can help grow your assets in the market and simultaneously protect your withdrawal value from taking losses. Tailored endorsements can do even more to give you guarantees and piece of mind.
Elkmont Partners Program
Are you a professional and interested in building a secondary income stream? If you'd like to learn more about working together, please contact us.
