Partnership & Shareholder Protection Insurance

Stop company shares falling into the wrong hands

Partnership & Shareholder Protection Insurance

Imagine if your co-owner sold their shares to a competitor. Or you found yourself with an unintended and unwanted business partner following death or divorce.

Our Shareholder or Partnership Protection is like a will for your company. So your business doesn’t fall into the wrong hands. And you keep control of your company.

Find out if you need shareholder protection

What is Shareholder Protection Insurance?

Shareholder Protection Insurance (also known as Partnership Protection) gives shareholders of a limited company the choice to buy a co-owner’s share of the business if they die or become seriously ill. It’s also available for partners in a partnership or LLP (Limited Liability Partnership).

“It’s like having a will for your company or partnership. It’s a way of protecting the personal and business-related values that you’ve worked so hard to build up.”

– Simon Claxton, Shareholder Protection specialist

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Shareholder Protection vs Key Person Insurance

Both policies help safeguard your business against the unexpected, but they serve different purposes. Shareholder protection ensures business ownership stays in the right hands if a shareholder dies or becomes critically ill, while key person insurance protects the company’s finances from the loss of a vital team member.

Running a co-owned business?

Alternatively, give us a call on: 0118 916 5480

How Shareholder Protection Secures Business Ownership

Shareholder protection insurance ensures that if a business co-owner dies or is critically ill, the remaining shareholders have the funds to buy back their shares. It prevents ownership from passing to outside parties (for example family members or competitors) and is a vital policy for maintaining control and continuity in private limited companies.

How Partnership Protection Insurance works

Our Shareholder Protection isn’t just about selling insurance. We’ll ask you lots of questions about your ambitions for the business and we’ll help you find and structure the right way to protect your business. We’ll consider things like whether your cover should be ‘written in trust’ or if ‘life of another’ policies would be a better fit.

Protect company ownership and shares

Lump sum payment

Receive the capital you need to buy a co-owner’s share of the business in the event of death or critical illness.
Tailored cover

Choose the scenarios that pose the greatest risk to you from death and terminal illness to permanent disability and critical illness.
'Written in trust'

Keep payouts out of probate and separate to the distribution of an estate. If a business has more than two owners, we recommend that cover is ‘written in trust’.
'Life of another'

If you are one of only two co-owners or you are closely related to your co-owners, it may be better to take out policies on a ‘life of another’ basis. Which simply means that you each take out a policy to cover the life of the other.

Why you should consider Shareholder or Partnership Protection

Without Shareholder Protection, shares could be transferred to someone who is unwilling or unable to run your business.
If you decide not to take out Shareholder Protection, make sure you have a sufficient emergency fund to buy out a deceased or seriously ill co-owner.
If you have several co-owners, you’ll need a shareholder or partnership agreement. Writing this agreement (or revising an existing agreement) is a good time to talk about putting Shareholder or Partnership Protection in place.