What would happen to your business if you, another key person or a shareholder were too ill to work or died unexpectedly? There are various business cover types available to manage this risk effectively.
This scenario is one that all business owners must consider, even if only some will actually face it. Who would take the reins of the business and continue its upward growth? Would there be an impact on future profits or business valuation due to their loss?
While you cannot prevent these circumstances, you can ease the unexpected financial implications by arranging adequate protection.
If a business partner or major shareholder died or was too ill to help you run the business, what kind of impact would this have?
Without the capital to buy the shares, you could find yourself working with whoever inherits them or with anyone they decide to sell them to. If they had a majority shareholding, it could mean an unknown boss calling the shots.
By putting shareholder protection in place, you could ensure the business, or remaining shareholders, receive the funds to buy back the shares from a critically ill partner or their estate, which benefits everyone. Here are some of the key benefits.
Many small businesses rely on a few key individuals who occupy several organisational roles.
Taking out key person protection provides capital (depending on the cover selected) if a key person is diagnosed with a specified critical illness or dies. This cash could provide a buffer to cover lost profits, a vital lifeline to pay loans, ease cash flow, and fund training and recruitment of replacement staff members.
Whether you require shareholder or key person protection, the Shorts team will help you identify your protection needs and guide you through the various types of cover available to ensure you get the right cover at the right price.
Simon Hollin
Robert Sully
Ryan Qualters
Joseph Tighe
Area of Interest ▾Pension and Retirement PlanningInvestment and Wealth ManagementTax and Estate PlanningProtectionOther
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