So, this just happened....

Owner financed buy out for a period of 20 years for a $5mm property and hospitality business.

Of course, he wants to insure the buyers with life insurance and disability.

The two potential insureds contacted me through their broker, expressing their frustration with the marketplace. Currently, they both work their a$$es off and gross about $120,000 a year together.... and what they're hearing back is that they cannot get the $3mm each that they want to put in place.

It's because the complete story isn't being told. No business market financial underwriting took place with the brokers they contacted - otherwise, this number would have been $3mm each, $6mm total.

And, I told them that.

What are the takeaways?

1) Not every owner considers self financing, because who would want that kind of risk? That can be shored up for contingencies - that's life insurance, and disability insurance, and Lloyd's covers. We do that.

2) Not every broker knows that financial underwriting matters. Insurance companies of all types will take that into consideration, but only if it's presented.

3) If you are a broker, and have a business case, feel free to reach out. This stuff is my jam.