Business Continuation Insurance


DEFINITION of 'Business Continuation Insurance'

Life insurance that a company or firm purchases to provide the funds necessary to continue business and cover the losses incurred in the event of the untimely death or disablement of someone critical to the business. This may be an owner, partner, or other employee without whom the business may cease to operate.

BREAKING DOWN 'Business Continuation Insurance'

The two most common types of business continuation insurance policies are entity purchases and cross purchases. Entity purchase policies involve the business itself being named as the owner and beneficiary of the insurance policy. Cross purchase policies mean that the individual owners of the business are named the beneficiaries for policies that cover their partners and/or co-owners.

  1. Business Income Coverage Form

    An insurance policy that covers a company's loss of income due ...
  2. Business Interruption Insurance

    A form of insurance coverage that replaces business income lost ...
  3. Business Owner Policy - BOP

    Insurance policies that combine protection from all major property ...
  4. Premium

    1. The total cost of an option. 2. The difference between the ...
  5. Liability

    A company's legal debts or obligations that arise during the ...
  6. Beneficiary

    Anybody who gains an advantage and/or profits from something. ...
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