Shareholder Protection Insurance Cover

Shareholder Protection Insurance Cover

What happens if an owner or part-owner of a company dies unexpectedly?

Regardless of the industry you operate in, it’s critical to ensure that you protect your business with a safety net. After all, it represents not only the livelihood of you and your family, but also that of your employees and fellow shareholders.

The event of a business owner dying unexpectedly can have a serious detrimental effects on their enterprise, not to mention the lives of their family. When it comes to distributing shares, family members and other beneficiaries may prefer to cash them in. Meanwhile other shareholders may wish to purchase the shares but may not have adequate funds at their disposal. This is where shareholder protection insurance comes in extremely useful.

The benefits of shareholder protection insurance:

  • A safe and stable business plan
  • Support for family members
  • It covers serious illnesses

Key Person Insurance

The death of a key employee in a business can have a devastating financial impact. You can provide your business with a safety net against the death, terminal or critical illness of a key employee with key person protection.

  • What is Key Person Protection?

Put simply, Key Person Protection (also known as key man insurance) is a business insuring itself against the financial loss it would suffer if a key person in their business died or were diagnosed with a specified critical illness.

  • How does Key Person Protection Work?

Key Person Protection is a life assurance or life assurance and critical illness cover policy taken out to cover the life of a key person within your business. The policy is owned and paid for by the employer, so any pay-out is payable to the employer.

  • Why do I need Key Person Protection?

The business could suffer badly, with sales and profits falling and increased workloads for the remaining staff. The reason this coverage is so important in a small company is because the death of a key person could also lead to the immediate death of the company itself.