Business Continuation Insurance

For many businesses, certain partners or other key employees can be vital to the overall success and existence of the business. Could the death of your partner jeopardize the future of your business? How about an accident that results in total disability of your chief computer programmer? If you find yourself in this situation, business continuation insurance will be an essential part of planning the future of your business. Whether talking about a partner, manager, proprietor, marketing executive, legal or financial executive or even key employee, there are instances where another person simply cannot to do the job as well. Business Continuation Insurance is essentially life and disability insurance that you can buy for a “key person” so that in the event of the untimely death or disablement of that person, you have the funds necessary to continue business. Because the policy is unique and specialized in nature, the best choice would be to find to a company that is specialized in the field. And you have. Our office has worked with several companies to provide business continuation policies of all kinds. Our licensed and experienced staff has the necessary experience to discuss your needs and advise you on the type of policy you need. If you have major financial interest in a company, do not make the mistake of letting key people that the business depends on unprotected. Give us a call today to discuss your options. 


Four Main Types of Business Continuation Insurance Programs: 

  • Key Person Business Disability Insurance: This type of insurance will protect your business in the event that you (or another key person such as a partner) is unable to perform the daily contributions required for the success of the business. Furthermore, policies can be set up as Disability Buyout Policies, which allows the purchase of a partners share in a business in the event of the disability.

  • Business Overhead Expense Insurance: A special type of disability Insurance policy that provides funds to pay for overhead expenses like rent and utilities in the event of a disability.

  • Key Person Business Life Insurance: Provides funds to surviving owners of a business to pay for losses incurred by the death of a key employee or partner. Examples of this may include hiring temporary help or the costs of training a new employee.

  • Buy-Sell Agreements (Life): This is a type of Key Person Life Insurance with a provision that allows the surviving owners to purchase the stock of the deceased owner without having to sell the assets of the firm.


Other information

  • Business Continuation Policies generally have other options related to ownership buyouts, transfers and for various other situations involving estates and beneficiaries. Please inquire for more information.

  • Generally, Business Continuation Policies provide permanent coverage on the life of the insured.

  • Generally, portions of premium are credited to cash value tax deferred accumulation accounts. The insurance carrier will usually credit dividends and interest to the policy owner’s accumulation account. Furthermore, policy loans may be available.

  • Generally, death benefits that are paid to the company or beneficiary is income tax free.

  • Please visit our insurance glossary tab for a full list of insurance terms and definitions.

  • There are many discounts available to help reduce your premium. Please visit our learning insurance discounts page to find out more information on how to maximize your savings.


This page contains only a general description of coverages and is not a contract. Details of coverage or limits may vary in some states and by carrier. All coverages are subject to the terms, provisions, exclusions, and conditions in the policy itself and in any endorsements.


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