Resources & Advice
Other Insurances to Consider When Selling Your Business
Contract of Sale Insurance protects buyers and sellers during the transaction itself — but there are other important policies every business owner should consider before, during, and after a sale.
The following insurance policies are not Contract of Sale Insurance. They are specific types of insurance that may be needed by the Seller, and the Buyer, depending on whether they are transferring ownership among existing partners, buying a new business, or selling their current business.
Here are some other types of insurance Sellers and Buyers should get advice on from their insurance broker. Each of these policies is very important.
Buy-Sell Insurance
What it is
A policy designed to fund a legally binding Buy-Sell Agreement. It ensures remaining partners can purchase the shares of an owner who dies, suffers a severe illness, or becomes permanently disabled.
How it works
Provides an immediate lump sum to the departing owner's estate. This prevents the business from being liquidated or forcing unwanted new shareholders into the partnership.
Learn more
Understand the obligations and benefits by getting specific advice from a wealth management advisor or an insurance broker licenced to sell this type of policy.
Run-Off Professional Indemnity (PI) Insurance
What it is
Covers you against claims made by past clients after you have sold the business. Standard business policies often end the moment ownership is transferred.
How it works
Because PI insurance operates on a "claims made" basis, you need a run-off clause. This ensures that past acts, errors, or omissions occurring before the sale are still covered for an agreed period — usually 5 to 7 years.
Learn more
Understand the obligations of selling a business and get specific advice from us at Benjamin & Benjamin Insurance Group Pty Ltd, your insurance broker, and your solicitors.
Contact Benjamin & BenjaminPre- and Post-Sale Liability
What it is
A careful division of public liability and workers' compensation coverage during the transition period.
How it works
Sellers should maintain public liability until the sale formally settles to cover incidents that happened under their watch. Buyers need to establish their own policies to kick in upon handover.
Learn more
Understand the obligations by getting specific advice from us at Benjamin & Benjamin Insurance Group Pty Ltd or from your insurance broker.
Speak to a SpecialistDon't forget
Contract of Sale Insurance is separate from all of the above
Contract of Sale Insurance — including Buyer Protect, Seller Protect, and Transaction Liability — specifically covers the warranties and representations made during the sale itself. It works alongside the policies above, not instead of them.