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    Protect Your Business-Plan for the
    Unexpected with a Buy-Sell Agreement

    Secure your company's future with a Buy-Sell Agreement from Punjab Insurance. Ensure a smooth transition of ownership and protect your business, your family, and your partners from financial uncertainty.

    Business meeting signing agreement

    What Is a Buy-Sell Agreement?

    A Buy-Sell Agreement is a legally binding contract between business partners or shareholders that outlines what happens if an owner retires, passes away, becomes disabled, or decides to leave the business. It ensures a clear plan for business succession and protects everyone's interests.

    • Defines how ownership shares are transferred
    • Prevents disputes and ensures business continuity
    • Provides financial security for owners and their families
    • Often funded with life or disability insurance for immediate liquidity

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    Types of Buy-Sell Agreements

    Cross-Purchase Agreement
    Cross-Purchase Agreement

    Owners buy insurance on each other and purchase the departing owner's share directly

    Redemption (Entity) Agreement
    Redemption (Entity) Agreement

    The company buys out the departing owner's share

    Hybrid Agreement
    Hybrid Agreement

    Combines elements of both cross-purchase and redemption structures

    How Does a Buy-Sell Agreement Work?

    Trigger Events
    Trigger Events

    Activated by death, disability, retirement, or voluntary exit

    Valuation Method
    Valuation Method

    Specifies how the business will be valued at the time of a triggering event

    Funding Mechanism
    Funding Mechanism

    Often funded with life and/or disability insurance to provide the cash needed for a buyout

    Purchase Terms
    Purchase Terms

    Details how and when ownership interests are bought and sold

    Why Does Your Business Need a Buy-Sell Agreement?

    • Smooth Ownership Transition: Prevents disruption if a partner exits the business
    • Protects Family and Heirs: Ensures fair compensation for a departing owner's family
    • Avoids Forced Liquidation: Keeps the business running, even in unexpected situations
    • Prevents Disputes: Reduces the risk of legal battles among remaining owners or heirs

    Why Choose Punjab Insurance?

    Access to Canada's top insurer
    Access to Canada's top insurers and competitive quotes
    Expert advisors
    Expert advisors to help you compare options and choose the right coverage
    Transparent advice
    Transparent advice on the pros and cons of each option

    FREQUENTLY ASKED QUESTIONS

    Frequently Asked Questions about
    Buy Sell Agreements

    Who should have a buy-sell agreement?
    Any business with two or more owners-partnerships, incorporated businesses, or family enterprises.
    How is a buy-sell agreement funded?
    Most are funded with life and/or disability insurance to ensure funds are available when needed.
    What happens if there's no agreement?
    Ownership transitions can be delayed, disputed, or forced-putting your business and family at risk.
    How do I get started?
    Get a free quote or schedule a call with a licensed Punjab Insurance advisor for personalized help.
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    Plan ahead to protect your business if the unexpected happens. A Buy-Sell Agreement from Punjab Insurance helps ensure a smooth transition of ownership while safeguarding your company's value and providing financial security for your partners and family-so your business legacy remains intact no matter what lies ahead.
    Disclaimer: Information on this page is for general guidance only and not a substitute for professional advice. Please consult a licensed Punjab Insurance advisor for personalized recommendations.