Austin, TX — Business Protection

Austin Startups Die for Two Reasons.
One of Them Is Unprotected Co-Founders.

Investors, VCs, and Austin accelerators will fund your company. What they won't tell you: co-founder death without a funded buy-sell agreement can dissolve a company faster than a down round. Tower Hill builds the business protection layer that Austin's startup community doesn't talk about but desperately needs.

60%
Startups Fail Within 5 Years
An unplanned founder death accelerates this dramatically
$0
Value of an Unexecuted Buy-Sell Agreement
Paper documents don't fund buyouts — policies do
10K+
Active Startups in Austin Metro
Most have no funded succession plan

Why Austin Families Choose Tower Hill Corp.

Three reasons Austin business protection clients trust us with their families.

Co-Founder Succession That Works

When a co-founder dies, their equity goes to their estate — often a spouse or family member with no interest in running a startup. A cross-purchase buy-sell agreement funded by life insurance gives you the legal and financial tools to keep control.

VC Investor Requirements

Many Austin VCs now require key person insurance as a condition of investment. Tower Hill structures these policies to satisfy institutional investor requirements while protecting the founding team simultaneously.

Company-Wide Talent Insurance

From CTOs to enterprise sales leads, Austin's talent market is fierce. A key person policy on your most critical hire creates a financial buffer if they're suddenly unavailable — no matter the reason.

Austin Business Protection Coverage Options

Three tiers of coverage — choose what fits your Austin life and budget.

Most Common First Step

Key Person Term Life

Coverage: $250K – $10M
Term: 10, 15, 20, or 30 years
  • Company is owner and beneficiary of the policy
  • Death benefit funds recruitment and revenue gap
  • Level premiums for predictable business budgeting
  • Satisfies most SBA and commercial lender requirements
  • Fast underwriting — decisions in days, not months
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Ownership Transfer Coverage

Buy-Sell Funding Policy

Coverage: Matched to business valuation
Term: Term or permanent
  • Death benefit funds the buyout of a deceased partner's equity
  • Cross-purchase or entity-purchase structures available
  • Prevents forced business sales at death
  • Estate gets fair value; survivor keeps control
  • Coordinates with your buy-sell legal agreement
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Disability Coverage for the Business

Business Overhead Expense Disability

Coverage: Up to $15K/month
Term: Up to 24 months
  • Pays rent, payroll, and loan payments during disability
  • Keeps the business open while the owner recovers
  • Separate from personal income protection
  • Typically deductible as a business expense
  • Available for sole proprietors and partnerships
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Austin Business Protection FAQ

Should my Austin startup buy key person insurance before our Series A?

Yes — many Austin VCs require it as a condition of term sheet. Tower Hill can structure a policy quickly that satisfies standard investor requirements while protecting the founding team.

How does a co-founder buy-sell agreement work in Austin?

Each co-founder holds a life insurance policy on the other co-founders. At death, the surviving founder uses the death benefit to buy out the deceased's equity from their estate — maintaining control without a forced company sale.

Can an Austin LLC use life insurance to fund a buy-sell?

Yes. Both entity-purchase (the LLC owns the policies) and cross-purchase (members own policies on each other) structures work for Austin LLCs. Your attorney and Tower Hill advisor coordinate the design.

How much key person coverage does my Austin startup need?

Common formulas: 5–10× the key person's compensation, or a percentage of company valuation attributable to them. For investor-required coverage, the VC term sheet often specifies a minimum.

Does Austin business protection insurance cover disability of a co-founder?

Separate business overhead expense disability policies cover operating costs if a co-founder is disabled. Tower Hill can coordinate key person life and disability coverage into a single business protection plan.

Business Protection Across Texas

Tower Hill serves all major Texas markets with licensed advisors and instant coverage decisions.

Austin Families Deserve Real Coverage.

Apply online in minutes. Licensed Texas advisors available if you have questions.

Tower Hill Corp • TX License #2608479TX • Licensed in Travis County

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