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Shareholder Protection Insurance

What is Shareholder protection insurance?

Shareholder protection insurance is an important part of any business financial plan, as it provides a safety net for shareholders during times of loss or hardship. It allows the surviving shareholder(s) to purchase the deceased shareholder’s share of the business from their estate, providing them with cash instead of ownership in the business.

This ensures that the dependants of the deceased shareholder have a willing buyer and access to much-needed funds. The implementation of shareholder protection insurance is an important step for businesses looking to protect their assets and secure their future.

It also serves as a testament to the company’s commitment to its shareholders and provides them with peace of mind that their investments are safe.

Who should get shareholder protection insurance?

Shareholder protection insurance should be obtained by all businesses with multiple shareholders. This includes companies owned by family members, business partners, or even investors.

By implementing shareholder protection insurance, businesses can ensure that their assets and investments are shielded from potential losses due to shareholder death or incapacity.

The shareholder protection insurance process

Setting up shareholder protection insurance is a relatively straightforward process.

It begins with researching different policies and the various options available. Once you have decided on the best option for your business, you will be required to complete an application form which includes questions about the shareholder’s relevant details as well as information about their estate.

Depending on the policy selected, there may be a waiting period before the cover is in place.

The importance of shareholder protection

This type of insurance is an important protection for businesses.

Makes sure surviving shareholder can buy the deceased shareholder’s share of the business
Gives cash to the dependants of the deceased shareholder instead of ownership in the business
Helps protect assets and secure future
Shows company commitment to shareholders
Gives shareholders peace of mind that their investments are safe.

Compare shareholder protection insurance for the best deal for you.

Our team of UK life insurance brokers search the entire insurance market and compare the best insurance protection cover quotes to get the best one for your situation and needs.

Shareholder protection cover can be flexible and work around you. We review our providers each year to make sure you are getting the best deal for you.