Professional Insurance Programs

General Liability Won’t Protect You From a Business Partner’s Liability Exposure

If your business partner quits, becomes disabled, dies or gets divorced, it can threaten business succession (and even the overall viability of the business).

A buy-sell agreement can help ensure that your business carries on the way you intended. Let us help you keep your business plan on track.

A buy-sell helps with business continuity

You’ve spent too much time building your brand to leave it to chance. A buy-sell agreement can help during business transitions and protect your business continuity for long-term success. Think of it as part of a comprehensive risk mitigation strategy that can use life insurance to fund the deal.

We’re here to help you plan now, before anything goes wrong. A buy-sell agreement can help you avoid a last-minute scramble during a stressful time.

Unlike with general liability, some perils aren’t obvious

When stress is high, people’s actions (and reactions) can be a liability and threaten normal business functions. These scenarios are unpleasant, but it’s better to be realistic and plan for the possibilities than cross your fingers and hope for the best: Here are some of the possibilities you should be planning for:

  • Death
  • Disability
  • Retirement
  • Resignation
  • Divorce
  • Expulsion or termination

We can help you make a plan that accounts for these unpleasantries before the fact.

Change isn’t easy, but it’s easier with a solid plan

A buy-sell is essentially a contract that you can customize in limitless ways. Some standard provisions in a buy-sell are:

  • Partner suddenly retires or quits
  • Partner becomes disabled and is no longer able to work
  • Partner is expelled from the business due to criminal conduct
  • Partner is divorced and ownership goes to the former spouse
  • Partner dies and an heir inherits shares

Most buy-sells also define the terms of buyout payments (monthly or cash), how to value business shares, and what type of life insurance you have on each partner. Life insurance policies can help fund a buy-sell agreement, which frees up cash for the business.

There’s no way to anticipate and avoid every risk, but you can take some time now to plan and avoid leaving your business continuity to chance.

We’re happy to start the conversation

Buy-sell agreements can get complicated, so give yourself time to craft a contract that works best for your business structure. We’re here to help protect your business now and into the future! Call us at 800-637-4676 or email us at info@profinsprog.com.



This content is for informational purposes only and not for the purpose of providing professional, financial, medical or legal advice. You should contact your licensed professional to obtain advice with respect to any particular issue or problem.

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