Insurance for Businesses



Key person insurance is a life insurance policy that a business takes out on its most valuable employee or employees. A policy can also include a rider for disability coverage to help if a key employee is disabled. Key person insurance helps safeguard a small business if an imperative employee dies or becomes disabled.


A buy and sell agreement (buy-sell agreement) is a legal remedy for establishing a clear plan of how to distribute the shares of a departed or deceased partner to the remaining ones. In the case of a death, life insurance policies are used to fund the buyout of shares from the deceased's estate.



Group disability insurance is disability coverage offered by employers, usually at little or no cost. If an illness or injury keeps you from working, group disability pays out a benefit to replace some of your lost income.


An Executive Bonus Plan is an arrangement in which the business pays the premium on a life insurance policy owned by the key employee as a “bonus” to the key employee. The bonus should be tax-deductible as a business expense.