This is a type of insurance, bought by the business, to help ensure that there are funds to help purchase shares if an owner/shareholder dies or suffers a severe illness.
Who is covered?
Owners of the business.
The proceeds are paid to the remaining owners so that they can buy the shares for a fair value from the estate and thus retain control of the business.
How does it work?
We offer a range of shareholder protection solutions, so you can choose the cover that meets your specific needs for your business. Terms and conditions will apply and cover options will depend on your specific circumstances. Please contact us for an initial discussion of your requirements
Assessing the need for shareholder protection cover
- If a shareholder were absent due to death or serious illness, could their estate force the business to wind up?
- Could the surviving shareholders run the business with the absent shareholder’s family members?
- Could the absent shareholder’s estate decide to sell the shares to an unsuitable buyer, such as a competitor?
- If the shares changed ownership to an unsuitable buyer, could lenders and creditors decide to renegotiate terms due to change in the ownership of the business?