Aside from regular shifts in the economy and market trends, any accident, serious illness, or death of important people in a business could create a massive impact on an organization. Situations like these could put the company's operations on hold, or even push it to the brink of bankruptcy. Thus, several types of Business Life Insurance policies have been created with forward-thinking businesses in mind.
There are 3 common types of insurance under the so-called Business Life Insurance. While they vary in the protection they provide, they all focus on ensuring the continued survival of the business in the event of unforeseen circumstances happening to their important personnel. These are:
- Business Expenses Insurance. Primarily designed for small- to medium-sized businesses, it can help the organization pay for its business expenses should its main income earner die, meet an accident, or be diagnosed with a terminal illness. With expenses covered such as utilities, rent, and wages, the company can continue operating without any hassle or worry. Unlike the other policies on the list, Business Expenses Insurance is often limited only to businesses with 5 income-producing staff or less.
- Key Person Insurance. Closely similar to the previous category, this one can cover the person who has very specific knowledge and skills essential to the profitability of the business. When that key person dies, becomes ill, or suffers from total and permanent disablement, the insurance may be paid out for business expenses such as hiring a person to temporarily fill in the position, settling debts of the organization, or covering its losses.
- Business Partner Insurance. As the name suggests, this is a type of Business Life Insurance for business partners. This can facilitate the buying and selling of a partner's shares in the company should he die, become ill, or be permanently and totally disabled. In these situations, the insurance-also known as Buy/Sell Insurance-goes to the surviving partner to help him buy the other partner's shares. It should be noted, however, that a Buy/Sell legal agreement sets strict guidelines on the implementation on how arrangement will work.
Getting Insurance for Your Business
Don't know which of these types of Business Life Insurance fits the needs of your business? We recommend that you seek the help of the qualified advisors at Rate Detective today. With their guidance, you can see a comparison of the country's top 9 insurers, so you can decide which one provides the best coverage based on your requirements and budget.