What is business continuation insurance? Business continuation insurance is merely a special use of life insurance and disability insurance which protects your company from financial loss caused by the death or the long-term disability of a key employee. Do you need it? Yes, if you have a major financial interest in a company, which could be jeopardized by the death or disability of a partner or other key employee. What types are there? Business overhead expense (BOE) insurance provides a means of paying your business overhead expenses, such as rent and utilities, during the time a business owner is disabled. Key person disability insurance protects your firm in the event a key employee or partner is unable to deliver critical contributions required for the success of the firm. Key person life insurance provides funds to allow surviving owners of your business to pay for losses incurred by the death of a key employee or partner, such as the need to hire temporary help or consultants or to train a new employee. Proceeds from key person life insurance can also be used in conjunction with a buy and sell agreement to help you, as the surviving owner, to purchase the stock of the deceased without selling assets of the firm.

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