No one likes to think about accidents, illness, or being unable to work. But these things happen, and ignoring them does not make them less likely. If something happened to you, your spouse, or your business partner tomorrow, how ready would you be?
In episode 68 of Maximum Octane, Kim Hickey talks with Donna Hazeltine, co-owner of American Import Auto in Venice, Florida. Donna shares the “aha moment” when she realized she could not answer the question, “What if something happens to Jeff?” She explains why people resist wills and life insurance, why disability insurance matters, how she built her what-if plan, and her work with Hope for Justice.
This article is for general education only and is not legal, insurance, or financial advice. Talk with qualified professionals about your situation.
What You Will Learn
- About Donna’s aha moment
- Putting things in place so our company can last forever
- Why it is essential to revisit will and life insurance quite often
- Having a will or life insurance is an investment in yourself and your family
- About Donna’s what-if plan
- Why having disability insurance is a good idea
- About Hope For Justice and how they help human trafficking victims
Donna’s Aha Moment
Around the 6 minute mark, Donna describes the moment she realized she did not have an answer to a simple question: what if something happened to her husband and business partner, Jeff? That realization pushed her to start planning. Many couples who own businesses together share the same blind spot, because the business and family finances are so intertwined.
Many business owners share Donna’s blind spot. When two people run a business together, each often handles different areas, and neither fully understands the other’s responsibilities. If one partner suddenly cannot work, the other may not know passwords, vendor contacts, financial details, or important processes. Recognizing this risk is the first step toward preparing for it.
Donna’s realization also highlights how easy it is to assume that bad things will not happen. Planning for the unexpected does not mean expecting the worst. It means being ready if it comes.
A simple exercise can reveal the gaps. Each partner writes down every task they handle in a typical month, from approving payroll to renewing insurance to knowing which vendor gives the best price on a particular part. Then they swap lists. Any item the other partner could not handle tomorrow belongs on the what-if plan. Many couples find that the most fragile knowledge is not dramatic: it is the login for the parts ordering system, the person to call when the shop management software goes down, or how the shop’s bills are actually paid each month.
Planning So the Business Can Last
Donna talks about putting things in place so the company can continue no matter what happens. That includes documenting how the business runs, making sure more than one person knows critical information, and having agreements in place between owners. ATI’s Partnership Agreements is a useful resource for co-owners.
Business continuity planning involves identifying critical functions, documenting how they work, cross-training employees, and establishing who will make decisions if key people are unavailable. For a repair shop, critical functions might include payroll, vendor payments, customer communication, and access to shop management systems. Having this information documented and accessible ensures the business can continue operating during a crisis.
Cross-training is one of the most practical steps a shop can take, and it pays off even without a crisis. When an advisor can cover basic bookkeeping tasks, or a manager knows how to run payroll, vacations and sick days stop creating chaos. Owners can start with a short list of critical tasks and assign a backup for each. Writing simple step-by-step instructions, stored where the backup can find them, turns knowledge that lives in one person’s head into a shop asset. Reviewing those instructions once a year keeps them current as systems change.
Why People Resist Wills and Life Insurance
Donna and Kim discuss why so many people avoid getting life insurance or meeting with a lawyer to create a will. Common reasons include discomfort with the topic, cost concerns, and the belief that there is plenty of time. Donna reframes it: having a will or life insurance is an investment in yourself and your family, not an expense.
Many people avoid estate planning because it forces them to confront mortality. Others assume it is expensive or complicated, or believe they do not have enough assets to need a plan. In reality, a basic will and adequate life insurance can provide significant protection for families and businesses at a reasonable cost. Without a will, state laws determine how assets are distributed, which may not reflect the owner’s wishes.
For business owners, the stakes are often higher than for employees. A shop may represent most of a family’s wealth, and without clear instructions the surviving spouse or partner may face difficult decisions about the business during an already painful time. Business partners may also face uncertainty about what happens to a deceased partner’s share. An estate planning attorney can explain how wills, trusts, and partnership agreements work together, and an insurance professional can help determine appropriate coverage. Scheduling that first meeting is often the hardest part.
Revisit Your Plans Often
Around the 12 minute mark, Donna explains why it is essential to revisit wills and life insurance regularly. Life changes. Children are born, businesses grow, assets change, and relationships evolve. A will written ten years ago may not reflect your current wishes or situation.
Major life events such as marriage, divorce, the birth of a child, the purchase of a business, or significant changes in assets should trigger a review of estate plans and insurance. Beneficiary designations on life insurance and retirement accounts also need regular review, since they often override instructions in a will.
Donna’s What-If Plan
Donna shares how she put her what-if plan in place. She also recommends the planner I’m Dead, Now What?, which helps people organize information about belongings, accounts, business affairs, and wishes in one place. A similar approach works for any shop owner:
- List every bank account, loan, and insurance policy, with contact information.
- Document passwords and access for critical business systems securely.
- Write down who should make decisions about the business if you cannot.
- Keep copies of your will, insurance policies, and partnership agreements together.
- Tell trusted people where to find this information.
A what-if plan does not need to be complicated. It can start with a simple binder or secure digital file containing key information and instructions. The important thing is that it exists, is kept current, and that trusted people know where to find it. Reviewing the plan annually helps keep it accurate.
Why Disability Insurance Matters
Around the 23 minute mark, Donna explains why disability insurance is a good idea. Many people think about life insurance but overlook the risk of being unable to work due to illness or injury. For shop owners who rely on their own income and involvement, disability can be financially devastating. The Social Security Administration’s disability benefits page explains government benefits, but many owners also need private coverage. Talk with an insurance professional about your options.
Disability is more common than many people realize. Illness or injury can prevent someone from working for months or even years. For business owners, a disability can affect both personal income and the business’s ability to operate. Disability insurance can replace a portion of income during that time. Some policies also offer business overhead coverage to help pay ongoing business expenses while the owner recovers.
When reviewing disability coverage, owners commonly ask about the waiting period before benefits begin, how long benefits last, how “disability” is defined in the policy, and whether the policy covers the owner’s specific occupation. These details vary from policy to policy and affect how useful the coverage would be. Owners who work in the bays face different physical risks than those who work mainly in the office, which may affect both need and cost. A qualified insurance professional can walk through these questions in the context of the owner’s situation.
Hope for Justice
Donna closes by talking about Hope for Justice and its work helping victims of human trafficking. Her involvement reflects a broader theme of protecting people who are vulnerable.
Supporting causes like Hope for Justice reflects a broader commitment to protecting vulnerable people. Many business owners find meaning in using their resources and influence to support organizations working on important issues in their communities and beyond.
Common Gaps in What-If Planning
Even owners who have started planning often leave gaps. One of the most common is outdated beneficiary designations that still name a former spouse or omit a newer child. Another is a will that exists but cannot be found, or a plan stored only in the owner’s head. Some partnerships have no written agreement covering what happens if one partner dies or becomes disabled, which can leave the surviving partner in a difficult position.
Digital access is a newer gap. Shop management systems, bank accounts, vendor portals, and email are often protected by passwords and two-factor authentication tied to one person’s phone. A secure method for trusted people to access these accounts in an emergency, such as a password manager with emergency access features, can prevent the business from being locked out at the worst possible moment.
Talking About What-If Plans With Your Family and Team
Planning for the unexpected is most effective when the people affected know about it. Spouses, business partners, adult children, and key employees should understand the basics of the plan, including who will make decisions and where important information is kept. These conversations can be uncomfortable, but they prevent confusion and conflict during an already difficult time.
For employees, knowing that the business has a plan provides reassurance. They can feel more confident that their jobs and the business will continue if something happens to the owner. Donna’s experience shows that a little planning today can protect families, employees, and the business for years to come.
Your What-If Checklist
- Do you and your partner have up-to-date wills?
- Is your life insurance enough to support your family and the business?
- Do you have disability coverage?
- Does someone besides you know how to access the business’s critical information?
Paige Hazeltine covers workplace injuries in How to Make Workers’ Comp Work Both Ways, and Richard Sharman explains insurance details in Don’t Wait Until the Palm Tree Falls Into Your Car!
Frequently Asked Questions
What is a what-if plan for a business owner?
A what-if plan is an organized collection of the information and instructions others would need if the owner suddenly could not work. It typically includes a list of bank accounts, loans, and insurance policies, access to critical business systems, copies of the will and partnership agreements, and instructions on who should make decisions. It should be stored securely, kept up to date, and shared with trusted people so they know it exists and where to find it.
Why should small business owners consider disability insurance?
Many owners rely on their own ability to work for both personal income and the health of the business. An illness or injury that keeps them out for months could create serious financial strain. Disability insurance can replace part of that income during recovery, and some business overhead policies help cover ongoing expenses like rent and utilities. Coverage terms vary widely, so owners should review options with a qualified insurance professional.
How often should you update your will and life insurance?
Many professionals suggest reviewing these documents every few years and after any major life event, such as marriage, divorce, the birth of a child, buying or selling a business, or a significant change in assets. Beneficiary designations on insurance policies and retirement accounts should be checked at the same time, since they often take priority over a will. A quick annual check that everything is still accurate is a good habit.
What should co-owners of a repair shop have in writing?
Co-owners benefit from a written partnership or operating agreement that covers ownership shares, decision-making authority, how profits are distributed, and what happens if a partner dies, becomes disabled, divorces, or wants to leave. Many agreements include buy-sell provisions that set out how a departing partner’s share will be valued and purchased. An attorney who works with small businesses can help draft an agreement that fits the partners’ goals and protects the business.
Resources and Links From This Episode
- American Import Auto website
- Book: Peter Pauper Press, I’m Dead, Now What?: Important Information About My Belongings, Business Affairs, and Wishes
- Hope For Justice website
