Cornerstone Insurance Agency Blog
If ever you run a business, do you ever get worried if you suddenly lose a key executive? It’s a disturbing thought, but because life can be unexpected in a lot of ways, it can happen. Fortunately, business continuation insurance can help you with that problem.
What is Business Continuation Insurance
It is a type of disability and life insurance that offers coverage for a business partner’s death or disability, key executive, and owner. The insurance provides for the costs that the business needs for disruption minimization to continue with its work. It also allows companies to adhere to and adopt a strategy of succession after losing a primary employee.
Breaking Down Business Continuation Insurance
There are two types of business continuation insurance: cross-purchase and entity-purchase policies.
How Business Continuation Insurance Mitigates Risk
Having a key executive suddenly die or get disabled can result in difficulties and financial problems. In other cases, losing an essential leader can cause severe disruption and business struggles that may occur to business failure.
Business continuation insurance is a combination of disability and life insurance to allow owners or business partners to plan once aware that they have a share of the executive’s business with a succession plan in place without any conflicts or misunderstandings beneath the surface on who will still manage operations.
A Company’s Failure
However, it is not only the loss of a business owner that can lead to the downfall of a company. Disability and life insurance can mitigate losses for anyone crucial to the management of a business, despite not owning a share.
For instance, a software company can ascertain that losing a valuable senior programmer can lead to severe chaos in the business. It is crucial to have insurance against losing their services. However, this insurance type does not usually come with buy-sell agreements, often when getting a partner or owner insured.
Make sure that your business has the necessary insurance policies to back it up in times of crises or unexpected shortcomings. The costs can get overwhelming if you don’t have protection, so double check your coverage now.
At Cornerstone Insurance Agency, we aim to provide comprehensive insurance policies that make your life easier. We want to help you get the insurance that fits your needs. You can get more information about our products and services by calling our agency at (888) 661-8831. Get your free quote today by CLICKING HERE.