It’s set in your buy-sell agreement, as a fixed value or a formula, which you agree with your accountant. Review it as the business grows, so the value and the coverage keep pace.
How is the value of a business partner’s share determined for buy-sell insurance?
Reviewed by Garrett Agencies Ltd., October 2026. How we write
Spot a mistake? Tell us and a licensed advisor will check it. Email compliance@garrett.ca
More about buy-sell insurance
Funds an agreement between co-owners, so the business and each owner’s family are protected if one dies or becomes disabled.
More questions about buy-sell insurance
- How does buy-sell insurance work in Canada?
- Are premiums for buy-sell insurance tax-deductible in Canada?
- What are the benefits of having buy-sell insurance for Canadian businesses?
- Can buy-sell insurance cover multiple partners in a Canadian business?
- Is buy-sell insurance mandatory for businesses in Canada?
A question about your coverage? Ask us.
No obligation. We’ll tell you plainly what we think, including when you already have what you need.