If a shareholder or partner in your business were to die could you afford to purchase their share of the business? If not there could be significant implications for the future of the business. Shareholder or partnership protection can help you protect the ownership of your business if this situation were to arise.
- What is Share Protection?
The loss of a business owner may potentially lead a business in to financial difficulties. Share Protection allows the remaining partners, directors or members to remain in control of the business following the death of the business owner.
- How does it work?
In the event of a business owner dying or becoming terminally or critically ill, this type of protection can provide a sum of money to the remaining business owners. This means that in the event of a claim being made the policy could pay out a lump sum to help purchase the deceased partners/directors/members interest in the business.
Why do I need Share Protection?
If a business owner dies with no share protection in place his or her share in the business may be passed to their family. This means that the surviving business owners could lose control of a proportion or, in some circumstances, all of the business. A share protection policy can help avoid potential problems.