There are a few insurance solutions available to protect your business should unexpected death, illness, or disability occur to you, your partner(s), or your key employee(s).
Key Person Insurance helps cover the loss or disability of key executives/employees whose absence may severely impact the business by paying out funds that can be used towards recruiting, hiring and training a permanent or temporary replacement, pay off debt and manage creditors, ease lenders’ concerns about your company’s financial health, and reassure customers, employees, and investors that your business will survive.
Buy-Sell Insurance is crucial to ensuring the continuity of your business and protecting the financial interests of each co-owner’s family. It is put into place to fund Buy-Sell Agreements among partners so that in the case of death or disability of one of the partners/owners, it allows for the insurance to fund the Buy-Sell Agreement rather than personal funds or business assets.
Business Overhead Expense Insurance covers the costs of “keeping the lights on” in your business during your absence due to a disability. Expenses covered include day-to-day operational expenses such as salaries, debts, mortgage/rent, and taxes, so that once you recover you can ensure that you have a business to come back to.