Is your business equipped with a contingency plan if your business’s co-owner or main investor becomes insolvent? No? Then you certainly need a Shareholder Protection cover. Your business’s future and the value of your shares in such a case would depend on your ability to cope with the situation. With a Shareholder Protection cover, you will be able to maintain the value of your shares and also attain control of your business.
The Shareholder Protection cover would facilitate various benefits including,
- The cover would buy out the shares of the insolvent shareholder and hence the owner or the investor would have a certain amount to survive on during their problematic times.
- These insurance covers are also effective in offering security to buy shares from the previous owner. You will be able to get their original value back without even worrying about selling any of your assets.
- With shareholder cover, you will get absolute control over the business and protect it from getting disrupted by incompetent members of the owner’s family.
- You can protect your business from complete closure due to ill-health or the death of the co-owner.