Business Owner Insurance Planning in Ontario: Income, Key Person, and Buy-Sell Needs

Business owners often carry two sets of responsibilities: the household that depends on their income and the business that depends on their work. Insurance planning should look at both.

A proper review may include personal coverage, business coverage, shareholder or partnership agreements, debt, employees, family income, and what happens if the owner dies, becomes disabled, or experiences a covered serious illness.

Areas to review

• Life insurance for family, debt, estate, or business continuity needs
• Disability insurance to help protect personal income
• Business overhead coverage where available and appropriate
• Critical illness coverage for recovery cash flow and business pressure
• Key person insurance for important owners or employees
• Buy-sell funding where partners or shareholders have an agreement

Why this is different from employee coverage

Employees may have group benefits and sick leave through work. Business owners often need to build their own protection and may also need to protect the business itself. The right plan depends on revenue, expenses, ownership structure, debt, family needs, and available budget.

The practical takeaway

Business protection should not be treated as one policy. It is a review of the owner, the business, the family, and the agreements around them.

Ottawa And Ontario Examples

• A self-employed professional may need to protect both personal income and business continuity if illness or injury stops work.
• A business owner may review life, disability, and critical illness coverage alongside retirement and succession planning.

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