Key Person Life Insurance · Owner-Operator Coverage

Your Business Survives Everything Except Losing You.

70% of small businesses fail within two years of an owner’s death. The business you built doesn’t have to be one of them.

See What Your Business NeedsDownload the Owner Risk Report
Scroll to see your exposure
Key Person InsuranceBuy-Sell FundingSBA Loan ProtectionBusiness ContinuityOwner-Operator CoveragePersonal Guarantee ShieldPartner BuyoutEstate ProtectionKey Person InsuranceBuy-Sell FundingSBA Loan ProtectionBusiness ContinuityOwner-Operator CoveragePersonal Guarantee ShieldPartner BuyoutEstate Protection
01

Finding 01 · Key-Person Risk Quantification

What your business actually loses when you’re gone.

A founder’s death wipes out an average of 60% of a firm’s revenue and cuts jobs by 17%. These aren’t projections — they’re documented outcomes from businesses identical to yours. The numbers below are calibrated to your revenue range.

$1M
$500K$1M$2M$5M$10M+

Lost Revenue (Yr 1)

$0

60% revenue erosion

Coverage Range

$0 — $0

5–10× gross compensation

Replacement Cost

$0

Search + training + ramp

Runway Needed

24 mo.

Avg. stabilization period

71%

of small businesses depend on one or two key people

— NAIC Survey

22%

actually have key person life insurance in place

— NAIC Survey

82%

of small business closures are caused by cash-flow failure

— U.S. Bank Study

The question isn’t whether your business depends on you. It’s whether it can survive without you for 18 months while your family processes your estate.

02

Finding 02 · Personal Debt Exposure Chain

Every debt you signed follows you home.

Owner-operators rarely separate their personal financial exposure from their business obligations. Here is the chain of liability that activates the morning your business loses you.

Personal Guarantee

SBA Loan

Up to $5M

The SBA requires a personal guarantee on loans over $200K. Your death triggers immediate repayment demands against your estate and your spouse.

Shield coverage addresses this exposure

Your personal guarantee doesn’t die with you. The death benefit does the one thing you can no longer do — it writes the check.

03

Finding 03 · Anonymized Case Studies

What actually happened to the business.

Three composite case studies drawn from documented outcomes. Industries and locations are accurate. Names and identifying details are redacted per client confidentiality agreements.

A

General Contractor

Southeast Region · 2021

$4.2M annual revenueDISSOLVED

Situation

Owner held all bonding capacity personally. Three active projects mid-construction. SBA 7(a) loan of $1.8M with personal guarantee.

Outcome

Bonding lapsed within 30 days of death. All three projects halted by general contractors. $2.1M in contract penalties. Business dissolved within 8 months. Family assumed $1.8M SBA liability against estate.

Value Destroyed

$3.9M

23 employees left without income. Family received a fraction of business value.

Shield coverage would have closed this gap entirely.

B

Dental Practice

Midwest Metro · 2022

$2.8M annual revenueLIQUIDATED

Situation

Solo practitioner. Practice valued at $1.4M. Commercial lease personally guaranteed through 2028. No buy-sell agreement. Two associates but no succession plan.

Outcome

Practice sold at 40-cent discount in forced liquidation. $380K in lease obligations assumed by estate. Patient records required expensive transfer. Family received $210K net after debts — on a $1.4M practice.

Value Destroyed

$1.19M

14 employees left without income. Family received a fraction of business value.

Shield coverage would have closed this gap entirely.

C

Franchise Owner

Southwest Region · 2023

$3.1M annual revenueFORCED SALE

Situation

Two-location franchise. SBA loan $900K. Franchise agreement contained death clause allowing franchisor to repurchase at book value. Partner buy-sell unfunded.

Outcome

Franchisor exercised repurchase right at $480K book value against $1.2M market value. Partner bought out surviving family for $240K — $960K below fair value. Family left with $240K on a $3.1M business.

Value Destroyed

$960K

31 employees left without income. Family received a fraction of business value.

Shield coverage would have closed this gap entirely.

In every case, the business had value. In every case, the family received a fraction of it. The difference was always the same: no funded plan.

Resolution · What Shield Does

One policy. Four problems solved.

Shield is structured specifically for owner-operators who carry the business on one life. The coverage is calibrated to your actual exposure — not a generic face amount.

01

Retire the Personal Guarantees

The death benefit retires SBA loans, equipment liens, and lease obligations — so your estate doesn't inherit your business debt. Your family keeps what you built.

02

Fund the Buy-Sell Agreement

The policy funds the buyout clause, allowing your partner to purchase your share at fair market value — without negotiating against your widow or your estate attorney.

03

Bridge the Revenue Gap

Cover 12–24 months of operating expenses while the business stabilizes, finds leadership, and rebuilds client relationships — without burning reserves or missing payroll.

04

Satisfy Lender Requirements

Some SBA lenders and commercial landlords require key person coverage as a condition of financing. Shield satisfies those requirements while protecting your family.

How it works

1

Coverage Calculator

Answer 7 questions about your revenue, debt obligations, and ownership structure. Takes 4 minutes.

2

Custom Illustration

Receive a policy illustration calibrated to your specific exposure — SBA balance, lease term, partner buyout value.

3

Coverage in 72 Hours

For most owner-operators under 55, Shield can bind coverage within 72 hours of application. No medical exam required up to $3M.

You’ve read the findings. You know the exposure.

The only question left is how much your business needs.

The calculator takes 4 minutes. It outputs a specific coverage figure tied to your SBA balance, your lease, and your partner agreement.

See What Your Business NeedsDownload the Owner Risk Report

Free Resource

The Owner Risk Report

A 12-page private advisory document covering key-person valuation methodology, buy-sell funding structures, SBA loan protection requirements, and the 2024 Connelly v. United States ruling and its implications for business owners.

  • Key-person valuation methodology (5x–10x gross compensation framework)
  • Buy-sell agreement funding structures — cross-purchase vs. entity redemption
  • SBA loan protection requirements and lender mandates
  • 2024 Connelly ruling implications for business valuations

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