What is Shareholder Protection Insurance?
Shareholder Protection Insurance is a type of business protection that can provide shareholders with the necessary funds to buy shares back from each other if one of them were to pass away or become critical/terminally ill Critical illness cover may be an additional cost if chosen).
This means that if a valid claim is made during the policy term, the lump sum could be used to help purchase the deceased partner, shareholding director, or member’s interest in the business.
Why consider Shareholder Protection Insurance?
The loss of a shareholder can be a very traumatic time for a business, with lots of uncertainty and sometimes disputes over how the company should carry on. With no planning, preparation or a policy in place, it could mean that the deceased’s business owners’ shares would be passed onto their estate, which would leave it up to their family to decide what should be done with their proportion of the business. This may mean that someone with little knowledge of the business could try to change the direction of the company or even sell their share to a competitor.
Please note:
This service is currently arranged by introduction only.
