While most businesses have insurances in place to cover the cost of damage to material property, for example buildings and contents, many fail to consider the impact of the loss of a key person or the death of a shareholder or a partner.
Profile can advise on these areas and, in particular, focuses on:
Keyperson Protection provides companies with a financial safety net in the event that serious illness, incapacity or death prevents an important individual from contributing to the business. In big organisations, the risk of losing an individual who contributes a significant amount of profit is small as the responsibility for important parts of the business is often spread across a large number of people.
However, for small and medium sized businesses, success may rest on one or two key people and the business would be seriously affected if either were to die or become seriously ill.
Share protection aims to protect you as existing shareholding owners of your business by ensuring that you have the legal right and the financial ability to purchase the interest of another shareholder following their death or serious illness. This means that at a difficult time for you and your business, you can rest assured that there is a legally binding agreement in place protecting all parties to ensure that the shares pass into the right hands at the right time and at the right price.
Profile can provide specialist advice on share protection and will work closely with your other professional advisers (i.e. solicitors and accountants) to put in place:
• A legal share purchase agreement
• Appropriately underwritten with life and/or critical illness plans
• Correctly structured and executed trusts
The key benefit from all of this is that on the death or serious illness of a partner or director/shareholder, you and your remaining partners/directors are able to continue to run your business with the minimum of disruption.
For all these reasons, corporate protection solutions should be an important part of the financial planning of all private businesses. Without them, the loss of a partner or shareholding director due to death or serious illness could put a heavy strain on the resources of your business at a time when it needs to be at its strongest.
Call us on 01768 840000 or e-mail firstname.lastname@example.org to request further information or arrange an initial meeting. This first meeting is at our expense and without obligation. We look forward to hearing from you