Business continuation insurance
When your business is shut down as a result of a fire or flood, you may be protected for loss of property but not for the loss of operating revenue to pay the bills while you rebuild. Similarly, if a partner dies, you may not be able to keep operating without their skills.
· Business interruption insurance, sometimes called con-sequential loss insurance, is usually an addition to your fire insurance policy that reimburses you for part of the lost profit and a proportion of the fixed costs of your business while you are out of action.
· Partnership insurance provides immediate cash to keep a partnership business intact in the event of the death of one of the partners. Since the death of a partner legally ends the partnership, the proceeds of this insurance can be used by the surviving partner to buy the deceased partner’s interest from their estate. Key person insurance is the same as partnership insurance, except that the beneficiary is the business entity itself.
