Providing a safety net for the untimely loss of a business owner.
The unfortunate death of a business owner is very traumatic for their family as well as those connected with the business.
Such an event can have a catastrophic financial effect to both dependants and business owners without this type of cover in place.
If a business partner or shareholder dies without any provision in place, then their share of the business will likely pass to their estate.
This can be problematic if say the spouse wants to be involved in the day to day running of the business but may have no experience or ability to contribute.
Alternatively, the family may decide to sell the shares to a third party which could mean loss of control for the surviving a partners or shareholders.
However, the most likely event is that usually the family want to realise the value of the share of the business, leaving the remaining business owners having to raise what could be significant funds in a relatively short period.
This can all easily be overcome offering peace of mind to all with the arrangement of insurance with a suitable trust and cross option agreement. Should the worst happen, the remaining partners or shareholders would have the money to buy the deceased’s shares, thereby maintaining control of the business.
In return the family of the deceased would also receive in cash their loved ones agreed value of his or hers share of the business.
It can sound a complex area of insurance but with our extensive expertise in this field, we can easily simplify the process for you and ensure that everything is set up as it should be.