The Buy-Sell Agreement (Insurance) is a critical document for Canadian businesses seeking to establish a clear framework for ownership transitions. This agreement becomes essential when multiple owners want to ensure business continuity and establish a predetermined mechanism for transferring ownership interests upon specific triggering events. The document integrates life and/or disability insurance policies as funding vehicles for potential buyouts, ensuring that funds are available when needed. It typically includes provisions for valuation methods, transfer procedures, and insurance policy requirements, all structured to comply with Canadian federal and provincial regulations. The agreement is particularly relevant for closely-held businesses, family enterprises, and professional corporations operating in Canada, where maintaining control over ownership transfers and ensuring business continuity are paramount concerns.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Your data doesn't train Genie's AI
You keep IP ownership of your docs
1. Parties: Identification of all business owners and the company as parties to the agreement
2. Background: Context of the agreement, including business ownership structure and purpose of the buy-sell arrangement
3. Definitions: Key terms used throughout the agreement, including triggering events, fair market value, and insurance-related terminology
4. Purchase Obligations: Core obligations of parties to buy/sell shares upon triggering events
5. Insurance Obligations: Requirements for maintaining life insurance policies, including ownership, premium payments, and beneficiary designations
6. Triggering Events: Specific events that activate the buy-sell provisions (death, disability, retirement, etc.)
7. Valuation Method: Agreed method for determining business value and share price
8. Payment Terms: Structure and timing of payments, including insurance proceeds application
9. Transfer Mechanics: Process for executing share transfers and documentation requirements
10. Representations and Warranties: Standard assurances from all parties regarding authority, ownership, and disclosure
11. Dispute Resolution: Process for resolving disagreements about valuation, transfers, or other matters
12. General Provisions: Standard legal provisions including notices, amendments, governing law, etc.
1. Cross-Purchase vs. Entity Purchase: Used when specifying whether insurance policies are owned by individual owners or the company itself
2. Disability Buy-Out Provisions: Detailed section when disability insurance is included in addition to life insurance
3. Family Transfer Exceptions: Used when allowing certain transfers to family members without triggering buy-sell provisions
4. Right of First Refusal: Optional mechanism for handling third-party offers
5. Tag-Along Rights: Protection for minority shareholders in case of majority owner sale
6. Drag-Along Rights: Mechanism to force minority shareholders to join in a sale
7. Life Insurance Trust Provisions: When insurance policies are held in trust rather than directly by parties
8. Key Person Provisions: Additional provisions for insurance on key employees who aren't owners
1. Schedule A - Current Ownership: Details of current share ownership and capital structure
2. Schedule B - Insurance Policies: List of all insurance policies, including policy numbers, face values, and owners
3. Schedule C - Valuation Formula: Detailed methodology for calculating business value
4. Schedule D - Premium Payment Schedule: Breakdown of insurance premium responsibilities
5. Appendix 1 - Sample Valuation: Example calculation using the agreed valuation formula
6. Appendix 2 - Transfer Documents: Forms and documents required for share transfers
7. Appendix 3 - Insurance Applications: Copies of insurance applications and medical questionnaires
8. Appendix 4 - Beneficiary Designations: Documentation of insurance policy beneficiary arrangements
Find the exact document you need
Insurance Book Of Business Purchase Agreement
A Canadian-law governed agreement for the transfer of insurance client portfolios and associated rights between insurance brokers or agencies.
Download
Business Continuation Agreement Life (Insurance)
A Canadian legal agreement establishing business succession through life insurance funding upon an owner's death.
Download
Cross Purchase Buy Sell Agreement Funded With Life (Insurance)
A Canadian-law governed agreement establishing terms for shareholders to purchase other shareholders' interests upon death, funded through life insurance policies.
Download
Lease Agreement (Insurance)
A Canadian legal document establishing property lease terms with specific insurance requirements and risk allocation provisions, governed by federal and provincial laws.
Download
Fronting Agreement (Insurance)
A Canadian-law governed agreement between a licensed insurer and reinsurer/captive for policy issuance and risk transfer arrangements, compliant with federal and provincial insurance regulations.
Download
Agreement To Provide (Insurance)
A Canadian-law governed agreement establishing insurance coverage terms and conditions between an insurance provider and insured party.
Download
Tenancy Agreement (Insurance)
A Canadian jurisdiction tenancy agreement that integrates standard lease provisions with specific insurance requirements and obligations for both landlord and tenant.
Download
Party Wall Agreement (Insurance)
A Canadian-compliant Party Wall Agreement outlining insurance requirements and responsibilities for adjoining property owners sharing a common wall structure.
Download
Hold Harmless Agreement (Insurance)
A Canadian legal document establishing indemnification terms and insurance requirements between parties, governed by federal and provincial laws.
Download
Buy Sell Agreement (Insurance)
A Canadian-law governed agreement establishing terms for business interest transfers upon specific events, funded through insurance mechanisms.
Download
Easement Indemnity Policy
A Canadian insurance policy protecting against risks and losses related to property easements, governed by federal and provincial regulations.
Download
Insurance Distribution Agreement
A Canadian-compliant agreement governing the relationship between insurers and distribution partners, establishing terms for insurance product distribution.
Download
Loss Portfolio Transfer Agreement
A Canadian-law governed reinsurance agreement transferring an insurance portfolio and associated liabilities from one insurer to another, subject to OSFI regulation.
Download
Insurance Referral Agreement
Canadian-law governed agreement establishing terms and conditions for insurance client referrals between insurance providers and referring parties.
Download
Insurance Premium Finance Agreement
A Canadian-compliant agreement enabling the financing of insurance premiums through a third-party lender, structured according to federal and provincial regulations.
Download
Insurance Addendum
A Canadian-compliant modification document that amends existing insurance policy terms, conditions, or coverage elements under federal and provincial insurance regulations.
Download
Disability Buyout Agreement
A Canadian legal agreement establishing terms for purchasing a business owner's interest upon disability, including valuation, funding, and transition procedures.
Download
Insurance Non Compete Agreement
A Canadian-law governed agreement that restricts competition within the insurance industry, protecting business interests and client relationships while maintaining compliance with federal and provincial regulations.
Download
Required Insurance Addendum To Lease Agreement
A Canadian legal document that supplements a lease agreement by specifying mandatory insurance requirements and obligations between landlord and tenant.
Download
Personal Injury Liability Release Agreement
A Canadian legal agreement that releases liability for personal injuries in exchange for compensation, compliant with federal and provincial regulations.
Download
Title Insurance Indemnity Agreement
A Canadian legal agreement where an indemnitor protects a title insurance company against specific title-related risks and losses, subject to federal and provincial regulations.
Download
Disability Buy Sell Agreement
A Canadian legal agreement establishing terms for the mandatory purchase of a business owner's interest upon disability, including valuation methods and funding mechanisms.
Download
Indemnification Hold Harmless And Insurance Agreement
A Canadian-law governed agreement establishing indemnification obligations, hold harmless provisions, and insurance requirements between parties for comprehensive risk management.
Download
Temporary Insurance Agreement
A Canadian-compliant agreement providing temporary insurance coverage while permanent policy arrangements are being finalized.
Download
Renters Insurance Agreement
A Canadian legal agreement establishing insurance coverage terms and conditions for renters, including property protection, liability coverage, and claims procedures.
Download
Liability Insurance Agreement
A Canadian-compliant insurance contract establishing liability coverage terms, conditions, and obligations between an insurer and insured party under federal and provincial laws.
Download
Life Insurance Agreement
A Canadian-compliant contract between an insurer and policyholder establishing terms for life insurance coverage and benefit payment.
Download
Car Insurance Agreement
A Canadian-compliant automobile insurance contract establishing coverage terms, conditions, and obligations between insurer and policyholder.
Download
Key Person Agreement
A Canadian law agreement establishing terms and conditions for retaining crucial employees, including special compensation, protection provisions, and insurance requirements.
Download
Subrogation Agreement
A Canadian-law governed agreement transferring recovery rights from an insured to their insurer following a claim payment, enabling the insurer to pursue recovery against responsible third parties.
Download
Life Settlement Agreement
A Canadian-compliant agreement for the sale of a life insurance policy from the original policy owner to a third-party purchaser, subject to provincial insurance and federal privacy regulations.
Download
Insurance Indemnification Agreement
A Canadian-law governed agreement establishing insurance-backed indemnification terms between parties, specifying coverage, claims procedures, and regulatory compliance requirements.
Download
Risk Transfer Agreement
A Canadian-law governed agreement facilitating the transfer of specified risks between parties, outlining transfer mechanisms, payment terms, and regulatory compliance requirements.
Download
Genie’s Security Promise
Genie is the safest place to draft. Here’s how we prioritise your privacy and security.
Your documents are private:
We do not train on your data; Genie’s AI improves independently
All data stored on Genie is private to your organisation
Your documents are protected:
Your documents are protected by ultra-secure 256-bit encryption
We are ISO27001 certified, so your data is secure
Organizational security:
You retain IP ownership of your documents and their information
You have full control over your data and who gets to see it
.png)
.png)