Shareholder protection, or partnership protection, policies protect the value of your business and ensure the value passes to your family on death. On death, a shareholder, partner or director’s share of their business forms part of his or her estate.  

This means it is often passed to the surviving spouse, or other beneficiaries, under the terms of their will.  Your business could lose control of those shares if you do not arrange funds to purchase those shares back from the estate.  

Your business may suffer as a result – especially if the interest is sold to a third party to release the capital.  Shareholder protection or partnership protection is designed to arrange the safe return of the business share to the remaining shareholders or partners.

A Company’s Articles of Association or partnership agreement deal with the issues of transferring and selling shares – these need to be carefully reviewed together with any trusts and insurance in place to ensure the shareholder or partner can retain control of the company or partnership.

Directors’ or partners’ share agreements may provide for the remaining directors to purchase the shares of other shareholding directors when they die.  However, there is a risk that the remaining directors may not have sufficient cash available when a fellow director passes away unexpectedly.  This can be remedied by putting a life insurance in place in case of such an eventuality.

To keep full control of their business, the surviving partners or co-directors need enough money to be able to buy the share of the business themselves.  Life assurance for each partner or co-director, arranged under a business trust for the benefit of the others, ensures that the funds are available.  It will need some care to determine the value of the business for insurable interest requirements & what level of cover is required, with a growing business these figures need to be kept under review to keep pace with that growth.

We offer comprehensive advice on partnership protection insurance, and as independent partnership protection advisers, we can search the whole insurance market to find the products that best meet your needs at the most competitive premiums.

Our Independent Financial Advisers are usually happy to meet at our clients' preferred location and time and to have detailed initial discussions with no obligation.

Please contact us by calling 01949 836173 or email us on This email address is being protected from spambots. You need JavaScript enabled to view it.