Director and Partner Share Protection Insurance

Director/Partner Share Protection Insurance is a very specialist, and sometimes complex, area. Getting expert advice is crucial in making sure your policies are set up correctly and your company is adequately protected.

In April 2010 the British Chamber Of Commerce commissioned research into the Business Protection Gap for Share Protection Insurance which produced startling results. The reported gap is approximately £400 billion.

Director/Partner protection pays out a cash sum if a Partner or Director (with a shareholding) dies or suffers from a critical illness. If the policy pays out the money can be used by the remaining Partners/Directors to buy his shares from his beneficiaries

The Managing Director who owns 33% share of the company dies suddenly
His shares are left to his wife who has no relevant business experience
It's always possible with a 33% shareholding she could become a liability, especially if sitting on the board
Or she could sell the 33% to individuals or a company that the other Directors view as potentially hostile or non beneficial purely for financial gain

The type of Keyman the policy is designed for

As its name suggests the owners, the shareholders (or Partners) of the firm. But of course the premium needed to cover the different owners will vary due to age and shareholding. This is discussed in more detail below.

How much cover is needed

Insure for all or part of the value of a Partner's or Director's shareholding which of course can fluctuate over time. Therefore, it's wise to evaluate the amount of cover needed on at least a annual basis.

For more information, advice and quotes on Director or Partner Share Protection Insurance simply complete one of the forms to the right or call us free phone 0800 612 2007 to speak to one of our trained advisers.