Many business owners treat succession planning like estate planning: important, but optional and future-oriented. In reality, succession is a live risk category—and the failure to operationalize it can lead to valuation loss, fractured continuity, or loss of investor confidence.
Key Insights:
- Key person loss is often unplanned and uninsured: 54% of middle market companies do not have key person life coverage in place despite being majority owner-dependent.
- Buy-sell agreements are often underfunded or unenforced: Without a liquidity mechanism (i.e., life insurance), even the best agreements fall apart.
- Executive benefit planning is strategic talent retention: Life insurance tools like executive bonus plans or split-dollar agreements are becoming competitive differentiators in C-suite hiring.
Liberty POV:
Life insurance isn’t about mortality—it’s about continuity. And for privately held businesses, it’s also about maintaining control. Liberty’s Life Insurance team works closely with our commercial P&C clients to structure coverage that fits alongside broader enterprise risk priorities.
Let’s walk through what your business continuity plan looks like—with life insurance embedded. To learn more, reach out to your Liberty advisor or contact us directly: https://libertycompany.com/contact/
