Share and Partnership Protection
Busy Bees Benefits offers Share and Partnership Protection as a business benefit, and you can find out more information regarding this type of protection below. If you’re interested and would like to find out more about how Share and Partnership Protection can safeguard your business, get in touch with us by phone or email.
Share Protection and Partnership Protection is sometimes referred to as ‘Owner’s Insurance’ and helps business owners keep control of the company if one of them dies or is diagnosed with a critical illness
WHO CAN USE SHARE AND PARTNERSHIP PROTECTION?
Share Protection is limited to companies whereas Partnership Protection is for partnerships and limited liability partnerships.
WHY DO I NEED SHARE AND PARTNERSHIP PROTECTION?
Losing an owner can have a huge impact on the day-to-day running of a business and can quickly result in financial difficulties. Any new business owner could be a competitor or someone completely unsuitable for business. For example, the family of a deceased owner may have very different ideas for the business, which could cause problems for the financial situation of the company. As well as this, uncertainty over ownership may cause banks and investors to re-structure or cancel funding. By supplying a lump sum of money if an owner were to die or become critically ill, the other existing owners can decide what to do with it.
HOW DOES SHARE PROTECTION WORK?
In the event of a business owner dying or being diagnosed with a terminal or specified critical illness, share protection can provide a lump sum to the remaining business owners. This means that in the event of a valid claim being made during the length of the policy, the lump sum could be used to help purchase the deceased shareholding director’s interest in the business.
HOW DOES PARTNERSHIP PROTECTION WORK?
In the event of a partner diagnosed with a terminal or specified critical illness, Partnership Protection can ensure that funds are available to allow the remaining partner(s) in a business to buy a partner’s shareholding. This in turn gives each partner the security of knowing that their beneficiaries or personal representatives will have a ready and willing buyer instead of having to maintain an interest in the business.
WHEN IS THE BENEFIT RECEIVED?
Once a claim has been made, the situation would be investigated, and the money will be arranged as soon as possible in order to ensure your company does not struggle. It will be a lump sum of money to allow existing owners to do what they want, so there is not an end date to the benefit.
At Busy Bees Benefits, we work with our clients to find the right benefit schemes to help protect their business. If you’re interested in finding out how Share & Partnership Protection can financially support your business, call us on 01543 484934 or email firstname.lastname@example.org.