Shareholder Protection Partnership Protection Key Man Insurance Business Loan Protection Relevant Life Policy Income Protection

Shareholder Protection

Shareholder protection could prove to be vital to your business in the event of death, or critical illness, of a shareholder. Have you got the right cover in place? Find out more

Partnership Protection

In the event of the death, or critical illness, of one of your business partners how would you provide the funds to buy out their interst and ensure the continuity of the business? Find out more

Key Man Insurance

Should a key employee of your business die or suffer a critical illness have you got the right plans in place to negate the financial ramifications this could have? Find out more

Business Loan Protection

How would your business repay any business loans should a key person or guarantor die or become critically ill? Find out more

Relevant Life Policy

Could you or your employees benefit from the tax efficient death in service benefits offered by a Relevant Life Plan? Find out more

Income Protection

Would you like the security of knowing that you have protection in place should you suffer loss of earnings due to accident or sickness? Find out more

Shareholder Protection

This form of insurance provides a substantial lump sum on the death of a firm's shareholder. A legal agreement ensures these funds can be used by surviving directors to purchase the deceased's share of the business from their estate. Shareholder Protection insurance is considered a vital part of modern business planning.

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In the event of the death or critical illness of a shareholder, a business faces the question of how to retain control of its operations. Shareholder Protection achieves this goal by allowing remaining shareholders to prevent control of their business from slipping away to outsiders, minimising the threat of disruption and uncertainty.

A legal agreement is put in place which gives the remaining directors the right to buy the shares and the inheriting spouse that to sell their shares to the directors. This is known as a Cross-Option Agreement.

The ability to buy out the estate of a deceased shareholders means decisions can continue to be made, voting take place and management operate as before. Without Shareholder Protection in place, a business might be unable to secure agreement on how to operate, leading to irretrievable break-down and time-consuming disputes.

Shareholder Protection is part of prudent business planning that allows directors to manage that process smoothly, providing the finance necessary to retain control of the business.

There are no guarantees that a bank would agree to lend funds for the same purpose. It is unlikely a bank would look favourably on lending to a business experiencing financial difficulty due to the loss of a partner or member.

In providing a substantial lump sum for owners to buy shares belonging to a deceased investor, Shareholder Protection delivers business continuity. It can be beneficial to the family of the deceased shareholder, who stand to realise value from their loved one's shares.

We treat the protection of our clients as seriously as they do and we always aim to provide a first class, tailored service and relevant, fit for purpose solutions.

If you would like a free, no obligation quote, further details about our services or have any queries please contact us.

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