What is shareholder protection insurance?
Shareholder protection insurance is a business insurance policy. Taken out by the shareholders of a business. If a shareholder dies, or becomes critically ill, the plan ensures that funds are made available for the other business owners. They can then purchase the business interest of the deceased/ill individual.
It provides an important safety net that allows companies to plan ahead should the worst happen. This minimises any interruption to the business whilst also compensating the deceased’s family.