If a shareholder in your company were to die could you afford to purchase their shares?

If the answer is no, it may be time to think about what you could do to protect the future of your business and its ownership.

Protection of your business is key, regardless of industry. To do this there are several different insurance products available to you to provide a financial safety net. Having this safety net in place is vital as it will protect you, your family, your employees and other stakeholders.

Should a shareholder of your business die unexpectedly, one of the most beneficial insurance products you can have in place is Shareholder Protection Insurance. It is designed to make the aftermath of this type of tragedy as stress free as possible. It provides other shareholders the financial funds to purchase the person’s shares. This lessens the chance of the shares falling into the hands of a hostile party or competitor due to people who inherit them selling them on.

The insurance policy provides a safe and stable option for your business, allowing you to maintain control and continuity. Fellow shareholders have peace of mind and it allows the business to return to normality as soon as possible.

It is also beneficial to the shareholder’s family, as more likely than not, the inheriting family members do not know how to manage a portfolio, and if they have lost a key bread winner, cash payments would be more useful in their time of need. Therefore, shareholders can be confident that in the case of their death, their family will receive a financial compensation.

If you would like to safeguard your business against personal adversities via financial products, contact one of our expert financial advisers today. They will be able to provide you with clear information and advise you on the best insurance products and policies for your business. Call us on 01639 262222 or click here to send us an email.