Shareholder Protection
We’ll walk you through your options, explain how everything works, and help you put the right cover in place. Our goal is to make sure your business is protected — and that everyone involved has clarity and peace of mind.
Safeguarding Your Business & Its Future
Losing a business partner or key shareholder can create financial uncertainty and operational challenges.
Shareholder Protection ensures that if a shareholder passes away, the remaining shareholders have the financial means to buy their shares and maintain control of the business.
What is Shareholder Protection?
Shareholder Protection provides a lump sum if a shareholder dies, allowing the remaining business owners to buy their shares. This prevents financial strain and ownership disputes.
With this cover, businesses can:
✔ Keep control and maintain stability
✔ Prevent shares from going to unintended beneficiaries
✔ Provide financial support to the deceased’s family
✔ Ensure a smooth and fair transfer of ownership
Without protection, shares may pass to the shareholder’s estate, risking business disruption or outside influence.
Who Can Apply?
✔ Businesses with multiple owners or directors
✔ Companies looking to protect business continuity
✔ Shareholders wanting a structured exit plan in case of death
Policies can be taken out for limited companies, partnerships, and LLPs, ensuring all types of business structures have the right level of protection.
Why Us?
✔ Specialist Business Protection Advice
✔ Clear Legal Agreements
✔ Tax-Efficient Structuring
✔ Dedicated Support
✔ FCA Regulated & Trusted
What Is/Is Not Covered?
✅ Conditions Covered
Shareholder Protection provides financial security in cases of:
🩺 Death of a shareholder
💷 Lump sum payout for remaining shareholders to buy shares
📄 Legal agreements to prevent disputes over ownership
Having this protection in place ensures the business remains financially stable and in the right hands.
❌ What's Not Covered
While Shareholder Protection offers extensive benefits, there are some exclusions:
❌ Suicide within the first 12 months of the policy
❌ Pre-existing medical conditions not disclosed at application
❌ Failure to agree on a legal structure for share purchase
It’s essential to set up a legal shareholder agreement alongside the policy to ensure a smooth and fair transition.
How Shareholder Protection Works:
A business or its shareholders take out policies on each owner’s life. If a shareholder passes away, the policy pays out a lump sum, which can be used to buy their shares and retain control of the business.
🏢 Policy taken out on each shareholder
📄 Legal agreement in place to determine how shares will be handled
💷 Lump sum payout provides funds for the remaining shareholders
This ensures a smooth transfer of ownership without financial hardship for the business or the deceased’s family.
Why Should I Consider Shareholder Protection?
The loss of a shareholder can disrupt a business, causing financial strain and ownership disputes.
Shareholder Protection ensures funds are available to buy back shares, prevents conflicts, secures financial support for the shareholder’s family, and keeps control within the business, protecting its future.
Make A Claim
If a shareholder passes away or is diagnosed with a critical illness, the claims process is straightforward:
✔ Contact the insurer to initiate the claim
✔ Provide medical or death certificates
✔ Receive the lump sum payout for share purchase
With the correct agreements in place, the payout allows remaining shareholders to buy the shares and maintain control.
