Director / Shareholder Protection Insurance
What is director share purchase / partnership protection?
If a director or shareholder of your company were to become critically ill or pass away suddenly, your business could be financially at risk.
The guidelines may not be clear about where that key employee’s stake in the company will go and without the right measures in place, you could see your business lose money, as their share of the business could be left to their spouse or children, who may take over their share without much business knowledge or worse sell them to a competitor
However, shareholder protection or director share purchase cover could prevent this from happening, by protecting each of the shareholders through paying out a lump sum equivalent to the value of their stake in the business and allowing the remaining shareholders to purchase those remaining shares and retain control of the business.
This form of policy can often be complex so it's always best to speak to a professional adviser before taking out such cover.Don’t hesitate to get in contact with one of our experienced IFA’s today for more advice and help with finding the perfect solution for your business.