Losing a partner or shareholder can have a major impact on the success of any business. But it’s not just about the loss of profit. Could your business continue if one of the owners were to die or suffer a critical illness? Who would take their place? Not only in performing their day to day duties, but in deciding how your business is run in the future?
Security for your business
Imagine if one of your co-owners were to die. Not only could your business suffer financially, but what would happen to their shares? You could be forced to work with someone new, like one of their family. That person may have no knowledge of your business and no interest in it either. But because they now own a share, they have just as much say as your co-owner had before they died. And if your co-owner suffers a critical illness this creates uncertainty. Will they be able to return to work and if so, when? Will they want to sell their shares and who will buy them?
By having ownership protection in place all of these problems can be solved. Business protection insurance gives you and your co-owners the security of being able to keep the ownership of the business in the hands of those who have built it. It also makes sure an owner who becomes ill, or the family of an owner who dies, receives a fair value for their share of the business.
Have you considered what might happen if you or one of the owners of your business becomes critically ill or dies?
They or their family might want to sell their share of the business. This could be to a competitor or some other unsuitable buyer.
They could force the winding up of the business.
Perhaps their family may wish to become involved in the business, which at best could be disruptive or at worst unacceptable to the other owners.
The other owners may have to use funds they intended for other purposes to buy the share of the stricken owner.
Specialist Protection is the trading name of Ann Griffiths Ltd and is an Appointed Representative of Stonebridge Group which is authorised and regulated by the Financial Conduct Authority in respect of insurance activities only.
As with all insurance policies, conditions and exclusions apply. Your home may be repossessed if you do not keep up repayments on your mortgage.