Partnership and shareholder - protection shelter in changeable conditions

Smaller businesses are under the cosh, with many battling reduced sales and squeezed funding. Although premiums involve outlay, business protection makes more sense than ever.

For partnerships and shareholders, cover can mean the difference between survival and failure if one of the shareholders or partners dies or becomes critically ill. If no insurance is in place, remaining partners or shareholders will need to raise funds themselves – and that’s not easy in the current climate, when banks are barely lending and liquidating a property may be impossible.

There are numerous options in terms of plans, and shareholders or partners should discuss their succession planning aims. We can help to provide cover in the most tax-effective way. It is also crucial that sums insured and the policy’s suitability are reviewed regularly.

There needs to be an accurate valuation of the business and the debt situation needs to be accounted for. Sums insured can change, as can the individuals who need protection – such as when there is a new director or partner – or when one leaves. Indeed, a plan needs to be sufficiently flexible to account for future structure changes.

Keeping a business going can be tough at the best of times, but given the current climate partnership and shareholder protection may be coming into its own. Please talk to us about the options that are right for your business.