Shareholders Protection Insurance

Protect your business and your personal financial situation in the event of the death of a shareholder.

Get a quote 01372 724747

The untimely death of a business owner or shareholder is a traumatic and tragic event, but it can also have unforeseen financial consequences.

The shareholder’s surviving spouse, partner, or other beneficiaries may inherit their shares and have an immediate need to raise funds. In turn, the surviving shareholders may want to buy the shares but find themselves without the necessary funds.

As a result, the remaining shareholders can find themselves working with a previously unknown third party as shares are sold to the highest bidder, or taking on unwanted debt in order to buy the shares themselves.

Retain control

Shareholder protection cover pays out a lump sum when a person it covers is diagnosed with a terminal illness, a specified critical illness or dies during the term of the cover.

It is designed to help the surviving business owners to buy the insured shareholder’s shares and retain control of the business.

Why buy shareholder protection insurance from Stonebridge?

At Stonebridge we have extensive experience in arranging shareholder protection cover.  We can help you to navigate the complexities to ensure cover is:

 

  • Based on a suitable agreement - putting in place an appropriate shareholders agreement is the first step to buying the right cover.
  • Properly designed - shareholder protection cover should be arranged under an appropriate trust.
  • Right for you - the correct insurance ensures that continuing shareholders would have funds to help buy the shares and the deceased's family will receive appropriate financial compensation.

Related FAQs

See all FAQs

What is Keyman insurance?

It is a life insurance where critical illness cover can also be included to protect your business against the loss of profit should a key employee pass away or be diagnosed with a critical illness. You can also protect against the loss of a key employee to protect a debt, and it could also help towards the costs of employing and training new personnel.

Who could be classed as a key employee?

Key employees can be regarded as individuals whose knowledge, skills, experience, key relationships or leadership are very important to a business’ future financial success. These can be a senior manager, top sales person, technical specialist, business founder.

How much cover would be needed for Keyman?

This would depend on your specific business needs which we would discuss together. This could be a multiple of profits, a multiple of salary or turnover. Your accountant would be able to provide this information to you.

Latest News from Stonebridge