In the event of a shareholder’s death, one of the most important challenges for your business is to ensure continuity.
For partners in a business, cover is extremely important as partnerships may be dissolved automatically on death unless stated otherwise in the partnership agreement.
Shareholder / Partnership Protection insurance in conjunction with a suitable legal agreement ensures that the surviving shareholders / partners receive a cash lump sum which can then be used to buy the deceased shareholder / partner’s share of ownership of the business. The business can then continue without the involvement of other parties such as the deceased’s beneficiaries who may not have the necessary skills and experience to make a worthwhile contribution to the business.