Disability Insurance

Business Continuation Planning

Owners want their business to continue without interruption, even in the event an owner or partner is unable to contribute to the company. Most co-owned businesses should have a buy-sell agreement in place to govern the buy-out of an owner or partner’s interest in the business, no matter the reason. The agreement should outline what triggers the available interest, who can buy it, and the fair purchase price of that interest.

The availability of an owner’s interest in the business due to death is often addressed through the life insurance planning process to ensure that money is available to purchase the deceased owner’s interest in the business, but what happens in the event of a prolonged or permanent disability? It is important to consider a funding mechanism in the event of disability as well.