Can I take out a life insurance policy on a business partner without their knowledge or permission?

[nubia]

My ex business partner stole quite a bit of money from me/the business. I’m in the court process to recover the over $150k owed to me but there’s a few snags. We didn’t have proper paperwork just shared accounts, things like that. If something happens to this person I will be out of luck as I will have no way of ever recovering my lost funds. Can I take out an insurance policy on them to ensure that doesn’t happen? Without their consent (obviously this person isn’t going to agree to it). NY state btw if it makes a difference.

 

[aog17]

@nubia Absolutely not.

If you ever form a new partnership in the future you can both get buy-sell agreement insurance policies that protect you if either partner passes away or one partner wants to be bought out.

 

[carolmariev11]

@nubia No

 

[qity]

@nubia Lloyds has a plan specifically for situations like this but you have to have an actual agreement.

Do you have anything that can create a business relationship beyond the joint accounts? You really need to define a contractual relationship in order to purchase it.

 

[ativyl]

@nubia It is illegal to take out life insurance on someone without their consent. Moreover, it is impractical. In a group plan you are risk pooling. For an individual the insurance company is going to want medical releases and testing.

As part of the court order you can request the right to insure them. The court might agree.

 

[dinkold]

@nubia You have an insurable interest in a business partner but likely not in an ex BP. Also any meaningful amount of insurance will be underwritten and need his participation.

 

[billycress]

@nubia Nope. What you do next time is have a buy sell agreement

 

[oregongirl1]

@nubia Nope