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Protection

Shareholder Protection

Keep control of your business if a shareholder dies or falls seriously ill.

Advice on shareholder and partnership protection, so ownership stays in the right hands and families are treated fairly if an owner dies or becomes critically ill.

Independent Whole of Market Chartered
Shareholder Protection

Shareholder and Partnership Protection

If a business owner dies or becomes seriously ill, their share can pass to someone with no interest in running the business, while their family may be left with a stake they cannot easily sell. Shareholder protection prevents that. It provides the funds for the remaining owners to buy the departing owner’s share, so control stays with the business and the family receives fair value.

We advise on the cover and help arrange the legal agreements that sit alongside it, so the arrangement works as intended when it is needed.

How It Works

  • Each owner is covered for the value of their share of the business.
  • A legal agreement sets out what happens to that share.
  • If an owner dies or becomes critically ill, the policy provides the funds to buy their share.
  • Control stays with the remaining owners and the family receives fair value.

Getting It Right

We help value the cover appropriately, arrange suitable policies and work with your legal adviser on the agreements. Your first conversation is free and without obligation.

The legal agreements involved in shareholder and partnership protection are not regulated by the Financial Conduct Authority. Cover is subject to the terms, conditions and exclusions of the policy.
Why Affinity

Why Choose Affinity

Keep Control

The remaining owners can buy the departing share, so the business stays in the right hands.

Fairness for Families

The owner’s family receives fair value rather than a stake they cannot sell.

Cover and Agreements

We arrange the protection and help put the legal agreements in place.

Experienced Guidance

We help value the arrangement correctly so it works when it is needed.

Good to Know

Shareholder Protection Questions

Who needs shareholder protection?+
Any business with two or more owners who would want to keep control if one died or became seriously ill. We will help you decide whether it is right for your business.
How is the amount of cover decided?+
It is usually based on the value of each owner’s share of the business. We help you arrive at a sensible valuation as part of the advice.
What is a cross-option agreement?+
It is the legal agreement that gives the remaining owners the option to buy, and the family the option to sell, the departing share. We work with your solicitor to put it in place.
Can it cover critical illness as well as death?+
Yes, cover can include critical illness so the arrangement works if an owner becomes seriously ill, not only on death.
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Protect Your Business and Your Family

Tell us about your business and one of our advisers will come back to you, usually within a working day.

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