Business protection
Provides funds for remaining shareholders to purchase the shares of a deceased or critically ill business owner, helping keep control of the business with the people running it.
Key benefits
What's typically included
Important to know
Every policy is different, so exact exclusions depend on the insurer and your individual circumstances. Common exclusions to be aware of include:
Common questions
Quick answers to the things people ask us most. Can't find what you're looking for? Get in touch and we'll be happy to help.
Our Blackburn-based advisers are happy to talk it through, with no obligation.
Your shares would usually pass to your estate and then your beneficiaries, who may have no interest or experience in running the business, which can create uncertainty for both the family and the remaining owners.
Yes, Shareholder Protection is usually arranged alongside a cross-option agreement, which sets out how and when shares can be bought and sold using the policy proceeds. A solicitor typically drafts this alongside the insurance arrangement.
Business valuations can be agreed periodically or calculated using a formula set out in the shareholder agreement. It's important to review this regularly as the business grows.
Yes, many arrangements include critical illness cover alongside life cover, so shares can also be bought if an owner is diagnosed with a serious illness and cannot continue in the business.
Tell us what matters to you and one of our advisers will help you explore your options.