The death of a shareholder or business partner can create uncertainty and disruption within a company. Shareholder protection insurance provides the funds needed to buy back shares, helps preserve ownership control, and ensures the shareholder’s family receives financial support when it is needed most.
Who we support
Business owners
Shareholders
Partnerships
We’re specialists in shareholder protection
Effective shareholder protection is about far more than simply arranging an insurance policy. Considerations including ownership structure of the business, shareholder agreements, succession planning and tax implications all need to work together to ensure the arrangement achieves the desired outcome when it is needed most.
We invest the time to have in-depth conversations with our clients to fully understand their business, objectives and long-term plans, so that we can work to ensure shareholder protection is structured correctly.
Challenges in your business
If a shareholder or business partner dies without a properly structured shareholder protection arrangement in place, the consequences can be significant. Their shares may pass to their estate, family members or other beneficiaries, who may have little interest or involvement in, or understanding of, the business. This can introduce new stakeholders into the company, potentially creating uncertainty around decision-making, business strategy and future ownership.
How we support
With a clear understanding of your business, its ownership structure and the people who are critical to its future, we’ll help you explore the right level of cover, explain how protection policies can work alongside legal agreements, and guide you through the application and underwriting process.
As your business evolves, we’ll work with you to review your arrangements, so the protection remains aligned to share values, ownership changes and your wider succession planning.
Your business performs
A well-structured shareholder protection solution helps build resilience and certainty by combining appropriate cover with carefully drafted legal agreements (arranged by your solicitor). This creates a clear mechanism for the transfer of shares, provides clarity over how the shares will be valued, and ensures funds are available when needed. It is a secure way to future-proof for your business, protect the remaining shareholders, and deliver a fair outcome for the shareholder’s family at what is often a very difficult time.
What is shareholder protection insurance?
Shareholder protection insurance is designed to provide a pre-agreed funding solution if a shareholder or business partner dies or suffers a serious illness covered by the policy.
The policy is usually arranged alongside legal agreements that set out how shares can be bought and sold, helping the insurance proceeds support a structured transfer of ownership.
This means the financial and legal arrangements can work together, giving the business and the shareholder’s family greater clarity at a difficult time.
The right structure will depend on your ownership model, share values and future plans, which is why advice should be tailored to your business rather than treated as a standard policy purchase.
Why does my business need shareholder protection?
For many businesses, ownership plays a critical role in strategic decision-making, operational continuity and long-term growth. If a shareholder is no longer able to participate in the business due to death or serious illness, the remaining owners may need to act quickly to maintain stability, preserve control and minimise disruption.
Shareholder protection can give your business a clear plan for one of the most difficult events it may face. Instead of leaving decisions to be made under pressure, it helps establish how shares can be valued, funded and transferred.
It can also support wider succession planning by making sure the protection in place reflects the company’s current ownership structure, commercial objectives and long-term ambitions.
For shareholders and their families, it provides greater certainty over the financial outcome, while helping the business continue with confidence.
Taking advice early can help ensure the level of cover, policy ownership and supporting agreements are structured correctly from the outset.
The benefits of shareholder protection?
There are many benefits of shareholder protection. When businesses are formed, the founding shareholders create a vision of the direction the business will take. The sudden loss of a major shareholder can cause disruption. Without the capital to buy the shares back, you could find yourself working with whoever inherits them, which could mean someone with a very different vision calling the shots.
Safeguarding the shareholders’ interest in the business and providing peace of mind for shareholders and their families creates ongoing business continuity and stability for your employees.
Obtaining the right advice is important – you should be working with specialists who have experience dealing with these very sensitive issues.
Choosing the right shareholder protection policy
Ensuring the business remains in the right hands at the right time is incredibly important if something unexpected were to happen by providing the necessary means to retain control of the business.
Our team will work with you to develop and implement appropriate solutions to provide the stability you need to keep your business running smoothly, keeping you, your people and your livelihood protected.
Meet the shareholder protection team
Tom Klinkenberg
Managing Partner (Wellbeing, Health & Protection)
