The FNDRS Elements®Element 31Wealth
Insurance Shield
Coverage that protects the deal and the family from a bad year.
| Symbol | In | Number | 31 | Family | In Wealth | Position | D5 |
|---|---|---|---|---|---|---|---|
| Scored as | Against a target | Compounds | PP | Worked in | Secure | Pillar | Owner outcomes |
§1 Definition
What insurance shield is
Coverage that protects the deal and the family from a bad year.
Insurance Shield is the coverage that protects the business, the deal, and your family from a bad year. On the business side it includes key-person, directors and officers, cyber, and general liability. At sale it includes representations and warranties insurance, which can replace much of the money a buyer would otherwise hold in escrow. On the personal side it is life and disability coverage sized to what the family would need if the exit never happened.
Many owners carry the policies their broker sold them a decade ago, sized to a much smaller business.
Use cases
Reviewing coverage against current enterprise value, adding cyber coverage if the business holds customer data, using key-person insurance to fund a buy-sell agreement, and understanding how R&W insurance can improve your deal terms.
The wealth family
What the owner and family keep. Wealth elements are set before the LOI, because after it they cannot be changed.
What you keep. Structure set before the letter of intent, so enterprise value becomes after-tax proceeds for the family.
Meet the family§2 Measurement
What the assay measures
Key-person, D&O, cyber, and representations & warranties coverage in place and sized to enterprise value; personal coverage sized to the family’s needs.
- Critical gap
- 0 to 24
- Leaking value
- 25 to 49
- Developing
- 50 to 74
- Strong
- 75 to 100
How the scale reads
- Every element is scored from 0 to 100 against what a sophisticated buyer expects at close.
- Risk elements are scored as control: higher is safer.
- Inputs are recorded, not targeted.
- Outcomes are derived from their feeding families.
§3 Profile
The wealth family in profile
Today's score for every element in the family, drawn as one shape against the dashed outline of the targets. The shape shows where the family is thin: insurance shield is the marked axis.
§4 Position
The wealth series
4 elements share the family. Read them together: a buyer prices them as a group.
§5 Compounds
What insurance shield forms
Compounds are the properties buyers actually price: several elements bonded into one. Each is scored from its parts.
Protected Proceeds
Proceeds structured before the LOI, not after. The difference between enterprise value and what the family keeps.
Bonds withTx Tax StrategyEs Estate Architecture
§6 In the FNDRS journey
Where insurance shield gets worked
The assay scores it. The process, the pillars, and the platform move it. Table 2 lists every place this element is on the agenda.
| Where | What happens | Alongside | Go |
|---|---|---|---|
| StageSecure | Protect and grow for generations. Convert concentrated business equity into an intentional personal balance sheet: tax, estate, insurance, investment, and the life after. | TxEsApFrLg | The process |
| Pillar of valueOwner outcomes | Enterprise value is not the number that matters. What you keep is, and what you do with it. This pillar is scored for the owner, not the buyer. | TxEsApFrLg | The pillar |
§7 In the valuation
Where insurance shield is priced
Priced by buyers Not modeled
The FNDRS valuation does not compute this element, either by design or because it is not yet measured. Its effect shows up in what a buyer will pay, in diligence, or in the structure of the deal and the proceeds.
What FNDRS reads
Outside the valuation by design.
Protects the deal and the family. It shapes escrow and deal terms rather than the price.
How the table meets the numberFind out where your insurance shield stands
The exit score is the first assay: fifteen minutes, six pillars, and a first read on the elements that matter most.