Buy-Sell Agreements

A buy-sell agreement is a legally binding agreement between co-owners that sets out how the business will continue to operate in the event that one of the owners is forced to leave.  This could be because of death, illness or injury, or even retirement.

A buy-sell agreement is made up of several legally binding clauses in a business partnership or operating agreement that can control the following business decisions:

• Who can buy a departing partner’s or shareholder’s share of the business
• What events will trigger a buyout
• What price will be paid for the partner’s or shareholder’s interest in the partnership

There are several business insurances that can be used to fund a buy-sell agreement, let us help you determine what works best for your business.

Key Person Insurance

Do you have an employee that you depend on to effectively run your business?

In the event that one of these employees died or became disabled, would your business suffer a financial loss?

Key person insurance is an important form of business insurance.  It can be described as an insurance policy taken out by a business to compensate that business for financial losses that would arise from the death or extended incapacity of the member of the business specified in the policy. The aim is to compensate the business for losses and facilitate business continuity.

A key person can be anyone directly associated with the business whose loss can cause financial strain to the business.

Business Overhead Insurance

Business overhead insurance is designed to cover a company’s business expenses in the event of the disability or death of the owner/operator. It is what covers the running costs of the business and keeps it afloat while the company works to hire and recoup lost revenue.

Some of the areas of compensation are:

• Mortgage/lease
• Utilities
• Employee salaries
• Office supplies
• Marketing/Advertising
• Any other regular monthly expenses

Give your employees the security of knowing that even in the event that you are incapacitated, the business will continue to operate and their jobs are secure.

*Ideal to be paired with ‘Key man insurance’.

For more information on Buy-Sell Agreements, Key Person Insurance, an/or Business Overhead Insurance, or to request a quote, please contact us for your personalized solution today.