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Shareholder Protection Insurance

Your shareholders are the behind-the-scenes facilitators of your business, and are vital to the continued success of your company. Businesses of all sizes should consider what their shareholders mean to the business, and what the impact would be if a shareholder were to become critically ill or die. This is where shareholder protection insurance comes in.

When you take out a shareholder protection insurance policy, you’ll receive a lump sum in the event that a key shareholder becomes critically ill, develops a long-term disability that means they’re not able to work, or dies. This can be used in many different ways depending on the structure of the business, including to buy back shares, assist the family of the shareholder or provide a critically ill shareholder with an income to ensure they don’t need to sell. 

 

At Avail Mortgages, we have access to policies across the market, from insurers including Royal London, AXA, LV, Aviva and Zurich, to make sure your business has a policy that works for you. To find out more or to see how we can find you a suitable policy, please get in touch with our experienced team. 

 

What is Shareholder Protection Insurance?

The main point of shareholder protection insurance is to minimise disruption to your business in case of the unfortunate event of the illness or death of a shareholder. Most shareholder protection insurance policies offer the company a lump sum upon the death or long-term illness of a shareholder. This lump sum can be used in many ways:

  • The company can transfer share ownership quickly and in a tax-efficient manner if required.
  • The company can quickly buy back the deceased’s or critically ill person’s shares.
  • The company can provide assistance to the shareholders family to help them sell the deceased person’s shares quickly and for a good price.
  • The company can give a shareholder suffering from critical illness or long-term injury an income without requiring they return to work, so they don’t have to sell their shares to another party.

There is a lot of variation and pitfalls within many shareholder protection insurance policies, which is why it is so important to make sure you have a policy that works for you. Our team can help advise and guide your business to ensure you aren’t paying into a policy that won’t help you when you really need it.

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Get In Touch

Please don’t hesitate to contact our team of expert brokers on 01484 556 245 today to find out more about shareholder protection insurance and how we can help you choose the right policy for your business. Whether you’re in the Leeds, Bradford, Harrogate or York area, we are experienced in helping you find a shareholder protection insurance policy that suits your needs.