Protecting Your Business from the Unexpected: Key Man Insurance and Operating Agreement Essentials

Legal Tip of the Week: If your business has multiple owners, make sure you have key man life insurance and a well-drafted operating agreement that works together with it.

Key man policies can provide critical funds if a partner passes away — but without clear provisions in your operating agreement, surviving partners may not be able to use those funds to buy out the deceased partner’s interest. That can lead to confusion, disputes, and financial strain.

Plan ahead. Protect your business and your partners.