When a business entity like a private company, closed corporation or even a trust, borrows money from a financial institution, they will need to sign surety for that debt. In the event of death, these partners will be held liable for the full outstanding amount. This can become a major problem for the business if there aren’t sufficient liquid funds to pay out that debt. A contingent liability plan will help cover these costs.
What is it?
Important to note
Strict enforcement of the Credit Act means that financial institutions will require businesses to pay any outstanding debt on behalf of a deceased member. The creditworthiness of the business will be affected by the partners death.
Do you need it?
Yes, if you own a business and have borrowed money from a financial institution.
How much does it cost?
The cost will depend on the cover you need.
How can we help you?
Contact us to find out how we can protect you and your business.