Compensation Glossary

Sole Proprietorship Insurance

This is a kind of life insurance on the life of the sole proprietor of a company. The purpose of this is to cover the cost of paying the salary of the person employed to run the business after the owner of the company dies or becomes disabled. It can also be set up to compensate the family of the owner for loss of possible / potential income, should the business fail after the disability or death of the sole proprietor.