Your business could be at risk if a key shareholder or business partner dies and the business is unable to fund the purchase of shares held in his or her estate. Shareholder or Partnership Protection covers the death of a business owner, allowing the remaining business owners to control the future of their business.
Shareholder and Partnership Protection plans are insurance policies that benefit both the remaining business owners and the beneficiaries of the shareholder or partner who has died.
This type of cover works alongside your partnership or shareholder agreement and is used to fund the purchase of shares in a business on the death of a shareholder or partner, to ensure that the business can stay in the control of the remaining shareholders or chosen successors and not simply pass to heirs who may have no interest in the business or who may cause operational problems.
By recompensing the deceased shareholder or partner’s estate for the share purchase, the policy will also benefit the deceased shareholder’s heirs.
Your S&P business adviser will help you secure your business’s future with the right protection plans.