What is a Business Run Off?

A business run-off, also known as a run-off coverage or business continuation coverage, is a type of insurance policy that provides financial protection to a business in the event that one of its key employees or partners dies, becomes disabled, or retires.

Business run-off coverage helps to ensure that the business can continue to operate and meet its financial obligations even in the absence of a key employee or partner. It can help to provide financial resources to the remaining business owners or employees to cover operating expenses, pay off outstanding debts, and make necessary investments in the business.

Business run-off coverage is typically purchased by the business as a standalone policy or as an endorsement to an existing insurance policy. The terms and conditions of the coverage will vary depending on the specific needs of the business and the terms of the policy.