Shareholder and Partnership Protection
Partners and major shareholders have the future of the business in their sights, planning for the long-term, steering the company in the right direction. The loss of a partner to illness, disablement or death is a heavy blow for the family, and has serious implications for the business.
What is Partnership & Shareholder Protection?
It makes sure partners can maintain control of the business in the unhappy event of a partner’s death. It also ensures that the family benefit from the partner’s share of the business, and their contribution to it.
Who needs it?
Any business with more than one partner or shareholder.
How is this different from Key Person Insurance?
This cover differs in several important ways. It creates the right conditions for succession-planning, and provides for the affected partner’s or shareholder’s family. It is a good idea to consider having both Key Person and Partner & Shareholder cover to help protect profits, meet the company’s commitments, and provide funding for business continuity. A partner or shareholder may also be your business’s key person.
Why do businesses take out this kind of cover?
For many reasons. The long-term future and direction of the business depends on its major shareholders and partners; losing a partner to illness, disablement or death has the potential to expose the business to loss of control and a turbulent period of succession. Partnership and Shareholder Protection covers funding to buy the partner’s beneficiaries’ share, keep control of the business and steer it towards a smooth succession.
What about the partner’s next-of-kin?
The policy protects them too, by guaranteeing they will receive quick payment for their share of the business. Beneficiaries who have neither the experience nor the appetite to contribute to the business appreciate a swift resolution of their partner’s business affairs.
Why should I choose Activ Consulting?
This is a complex area of insurance, involving trusts, legalities and cross-option agreements. Activ Consulting has long experience of navigating businesses through these. Because Activ Consulting works with main insurers specialising in partner and shareholder protection, we’re able to offer independent and expert advice.