Shareholder Protection Insurance
Unexpected events, such as the death or critical illness of a shareholder, can significantly disrupt your business.
Shareholder Protection Insurance from Omny Benefits ensures your company remains financially stable, operationally secure, and in the hands of those who understand and share its vision.
This essential cover provides a lump sum payout, enabling surviving shareholders to buy the affected individual’s shares. Without this protection, shares may pass to beneficiaries who have no involvement in or knowledge of the business, risking operational disruption and financial strain.
At Omny Benefits, we offer tailored advice and comprehensive support to design a policy that fits your business structure. We’ll ensure a smooth, transparent process that protects both your business and the families of your shareholders.
Key Benefits
- Business Continuity: Prevent disruption and ensure stability during unexpected events.
- Ownership Control: Keep shares within the existing ownership structure.
- Financial Security: Lump sum payout to cover the purchase of shares without financial strain.
- Clear Succession Planning: Establish a transparent process for share transfers.
- Peace of Mind: Reassurance for both the business and the shareholders’ families.
FAQs about Shareholder Protection Insurance
If a shareholder unexpectedly passes away or becomes critically ill, their shares might transfer to beneficiaries who may not align with the company’s goals. Shareholder Protection Insurance ensures surviving shareholders have the financial means to buy those shares, maintaining control, stability, and business continuity.
This insurance combines a legal agreement with a life insurance policy. Shareholders take out policies on one another, and in the event of death or critical illness, the payout goes directly to the surviving shareholders. This ensures the smooth purchase of shares from the affected shareholder’s estate.
- Control: Prevent shares from being transferred to unintended parties.
- Stability: Protect against operational and financial disruption.
- Succession Planning: Ensure a clear, legally defined ownership transfer process.
- Peace of Mind: Provide reassurance for shareholders and their families.
Costs vary depending on factors such as the age and health of shareholders, the value of the business, and the level of cover required. However, it’s generally an affordable way to safeguard against substantial financial and operational risks.
Setting up Shareholder Protection Insurance requires careful planning. At Omny Benefits, we’ll:
- Assess your business structure and shareholder dynamics.
- Help establish the necessary legal agreements.
- Source competitive insurance policies from trusted providers.
- Guide you through implementation and ongoing management.
Our expert team ensures the process is seamless and aligned with your business objectives.
