Business owners life insurance or Key Person Insurance is a type of insurance that provides coverage on the life of a key person within a business. It aims to protect the business from financial loss in the event of the death of the key person, who may be critical to the company's operations, revenue generation, or expertise.
A similar type of insurance is Buy-Sell Agreement Insurance. This insurance is typically used in businesses with multiple owners or partners. It helps facilitate the smooth transfer of ownership in the event of a partner's death by providing funds to buy out their share from their estate or beneficiaries.
Shielding corporate directors and officers from personal financial liability arising from their decisions and actions while serving in their leadership roles.
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