This is the insurance for the business owners and major shareholders. In the event of death of the major shareholder, the insurance proceeds shall be used to buy-out the shares of the deceased shareholder thereby ensuring the ability of the corporation to operate.
Below are some forms of Business Continuation Insurance:
1. Cross-Sell Insurance – each business partner/director buys an insurance for each of the partners and vice versa.
2. Key Person Insurance – only the personnel who performs a very critical function are insured such that their loss shall not prevent the company from operating.