Business Protection

Shareholder and partnership protection

What happens to your shares in the event of your death? The normal circumstance is for the shares to pass to a surviving spouse.

This is not ideal as the surviving shareholders would prefer to have the shares back to retain control of the business and the surviving spouse would prefer cash instead of shares.

What value is put on the shares? Do the surviving shareholders have enough money to buy the shares? Does the spouse have to sell the shares?

These are just some of the questions that your next of kin would NOT want to have to contend with in such circumstances. Then there is the reverse scenario of you having a moral obligation to the deceased family, and you may have to put up with their interference or their appointment of a representative.

The simple answer is for each partner’s or shareholder’s value to be independently insured. We can provide the following advice and administration:

  • Length and type of policy.
  • Financial Underwriting guidance.
  • Appropriate trust documents and trustee guidance.
  • Clear agreement with put and call options.
  • Ongoing reviews of cover.

The above actions will ensure that each shareholders/partner’s family receive the full cash value of their share whilst the remaining partners have 100% ownership of the business going forward.

Key Person Protection

Which is more easily replaced … your car or your top sales person or IT specialist?

Businesses rightly take a lot of care insuring their physical assets but often miss their human ones. The loss of your top performer, your IT specialist or your design/development guru may cost the business significantly more than you think. Then there are the driving forces behind the business, the directors. What cost do you put on their loss?

Simple life assurance which can incorporate critical illness and income benefits is the easy answer. And just like your general insurances, if structured correctly the premiums are a genuine business expense for tax purposes.

We can assist with:

  • Identifying the key people.
  • The mix of cover and duration.
  • Setting the sums insured.

Financial underwriting on our understanding of current legislation which, of course, is liable to change in the future and would depend upon an individual’s financial circumstances. Contact us today to see how we can help you with your Business Protection.