Key Person & Shareholder Protection

Key Person or Business Owner Insurance

We can analyse your business set up and determine whether you are susceptible to major problems if the business owner or a key employee becomes ill or passes away, and put in place cover so that the business can have time to recover.

You most probably insure your premises or any transport your business uses but what about the most fundamental part of your business, you or your key employee? If the individual or few individuals that are the main contributors for your company’s profit or even key elements of certain short term projects, become ill or unfortunately pass away..what will happen to the business?

Just do a simple calculation yourself of the % turnover a key employee or you the business owner are responsible for. How will the business recoup this immediate loss? Include in this the cost of trying to find an adequate replacement as well as training? Maybe the company will need a large loan to recoup the loss in turnover, no doubt at immense rates. Would all of this potential turbulence not be better dealt with by taking out a simple Key persons insurance?

Shareholder Protection

If there is a small group of shareholders in a company…do you have the necessary plans in place to deal with the scenario of one of the partners passing away? What will happen to their share of the business? If nothing is in place then this will pass on to their beneficiaries. Can the remaining shareholders afford to buy this share of the company from the beneficiaries if they are not interested in them? Worse so, what happens if the beneficiaries sell their inherited share to a stranger, and the remaining shareholders are left with an unwanted business partner.

These issues may not seem important now, but these scenarios could very well occur, with the potential for disastrous results. Is it not prudent then, to prepare for such possibilities with simple shareholder protection, which could provide a lump sum to the remaining shareholders to have the option of buying the shares from the beneficiaries from the deceased partner? Contact us to see the options available to protect your business.