Shareholder Protection Insurance

Shareholder protection, also known as buy/sell cover, is a type of insurance designed to protect the co-owners of small proprietary businesses.

You've formed a partnership with people you trust and founded a thriving business. You've built the business together and you each perform a vital role in the work you do. You have distinct skills which complement each other and you make decisions easily because you all have the same goals.

So if something happens to one of your partners, what happens to your business? Will you suddenly be in partnership with a committee of executors? Will you have to wait months while their estate is wound up before you even discover who owns half of your company?

Shareholder protection insurance is a contract between all the shareholders of your business, which sets out exactly what will happen if one of you is no longer able to participate in running it. You can insure against the death of a shareholder, or against serious illness or injury. The agreement allows the remaining shareholders to buy their shares in the business at an agreed price, using a lump sum payout from your insurance company.

Shareholder insurance protects your next-of-kin too, because it assures them of a fair price for your share of your business. By making arrangements in advance you can spare them the hassle and heartache of having to set a price on the business you built and sell your shares to a stranger.

Shareholder protection insurance can be packaged with other business life insurances to provide customised cover for your business.

Shareholder protection insurance can be bundled with any other business life insurance to provide a comprehensive package. Our life insurance specialists can answer all your questions about the business life insurance products on offer and help you understand and compare your options.