What option allows for the transfer of business ownership risk?

The option that allows for the transfer of business ownership risk is a Business Continuation Agreement. This type of agreement is specifically designed to address the potential loss of a business due to the departure of an owner, whether through death, disability, or other circumstances.

In essence, a Business Continuation Agreement lays out how the ownership of the business will be handled in such events, often involving arrangements for purchasing the exiting owner's shares. This ensures that the business can continue operating smoothly, thereby mitigating financial risks and providing stability for remaining owners and employees. It can involve funding mechanisms, such as life insurance policies, which may pay the business or remaining owners a certain amount upon the triggering event, facilitating the buyout process.

Other options, while related to aspects of business and individual risk management, do not specifically address the transfer of ownership risk in a business context. Health insurance plans focus more on health-related expenses for individuals, life insurance policies primarily provide financial support to beneficiaries upon death rather than addressing ownership transfer, and property insurance protects against physical asset loss rather than business continuity.