What is
Disability Buy-Out
Disability Buy-Out (DBO) insurance ensures that if a partner becomes permanently disabled, the business can buy out their share without draining company cash flow or triggering disputes.
The policy funds a buyout agreement, allowing healthy partners to regain control without needing loans or rushed sales.
What it Covers?
Lump-sum payout after a defined waiting period (e.g. 12 –24 months)
Used to purchase the disabled partner’s equity
Terms tied to your buy-sell agreement or shareholder contract
Avoids relying on personal or business reserves to execute the buyout
Who Is It For?
Professional firms (e.g., law, accounting, medical) with multiple owners
Any business where equity ownership is shared between partners
Owners who want a clean, funded exit plan in the event of permanent disability