Know your options: the right insurance can help a company outlast its founders.

• Author: McFadden, Josh
• Position: EntrepreneurEdge

Selecting the right insurance options for your company is all about the "what ifs?" What if the founder dies or becomes severely disabled? What if your financial wizard becomes critically ill?

Companies should plan for these types of contingencies from day one, says Blaine Allen, vice president of employee benefits at The Buckner Company.

"I recommend you remove any variables," he says. "If you're starting out, you're going to have some document telling what will happen in the event of death or disability. It will be a legal document explaining what will happen in these instances:'

Whatever the economic conditions a company finds itself in, Allen advises business leaders not delay and insure themselves, their partner or partners, and their key employees. Even for startups, though it may be difficult, having the right insurance is vitally important.

"The structure of the insurance is different depending on the type of business--corporation, limited liability company, limited partnership, he says. "With a startup, cash flow is an issue. You have to qualify. A con can be the cost. But if you can get a hold of a good, qualified broker who can get a quote, you can make it work."

The following are common insurance options that can keep your company humming along--even when the worst happens.

Life Insurance

You often hear about the importance of life insurance for individuals as a way to replace income for surviving family members in case of death. But business owners should be aware of how it can affect key leaders and other members of their companies.

Life insurance is critical whether the business is a sole proprietorship or a partnership. In a sole proprietorship, for example, the owner is personally liable for all debts in the business.

"Life insurance maintains and keeps the relationship viable," says Allen. "It affects the ability to...