Product meant to cover ESOP 'blindside'

Exceptional Risk Advisors has launched ESOP Select, an insurance product aimed at protecting the ESOP “blindside.”

Employee Stock Ownership Plans (ESOPs) typically secure large blocks of life insurance on key executives and owners to protect the ESOP from a loss due to the premature death of a selling shareholder. However, most ESOPs are not insured should a shareholder become disabled — leaving ESOP trustees and fiduciaries with a “blindside.”

ESOP Select can deploy up to $100 million per insured person of disability protection, which can protect ESOP debt or repurchase obligations should a key shareholder become seriously disabled.