Business Continuation Insurance
What Does Business Continuation Insurance Mean?
Business continuation insurance is designed to protect a business from the financial impact of the death or disability of a partner, supporting business succession planning. Typically consisting of life and disability insurance policies, the coverage is structured based on the terms of the ownership transfer, which may be set up as a buy-sell agreement, cross-purchase agreement, or entity purchase plan.
Insuranceopedia Explains Business Continuation Insurance
Business continuation insurance is a risk management strategy that enables a company to continue operating despite the loss of a key person. It helps mitigate the financial impact and the stress caused by the sudden absence of leadership. Additionally, it establishes a clear agreement to ensure smooth business succession, preventing potential power struggles, misunderstandings, or conflicts in the future.
