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What is shareholder protection insurance?

Shareholder protection insurance provides a form of succession planning for your business, in the event of a key shareholder passing away or becoming critically ill. 

It will provide a pre agreed allocation of their holdings in the event of their death or illness, meaning that there is no risk that the shares will be held by a disinterested family member who could sell their shares to a party with different strategic interests, in addition to the deceased or ill shareholders family having certainty that they will get an agreed sum for their shares.


Why do I need shareholder protection insurance?

In the event of the death or critical illness of a shareholder, it is likely that their shares will pass to their estate, leaving the decision of what to do with the shares up to their family. This could mean that family members may sell the shares onto someone with different strategic goals. A shareholder protection insurance policy supports both the deceased or critically ill shareholder and existing shareholders, to sell their holding for a pre agreed amount.


How does shareholder protection insurance work?

Shareholder protection insurance provides a lump sum pay out to either one named beneficiary or group of beneficiaries, so they can have funds to purchase the equity of a partner who passes away or becomes critically ill.

Get in touch today and we will search the UK’s leading insurers to find the right policy for you at the right price.

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