Protecting your business: Ownership protection

Business Continuation Cover


The death or critical illness of a shareholder director or business partner could have terrible consequences on your business and your family. It creates uncertainty for the future of the business and can leave your family vulnerable at an already distressing time.

In the unfortunate event of a shareholder or business partner dying or suffering a critical illness there is often an agreement in place ensuring that the remaining shareholders or business partners have the option to purchase the shareholding enabling the business to continue.

Whilst this is a sensible step to take, will the remaining shareholders or business partners have enough money to buy the shares at short notice? Will they be able to borrow the money to do so?

Ownership protection cover can solve this problem by providing the necessary funds to purchase the shares. Therefore, control of the business remains in the right hands and the family is given fair value for the shares sold – all in a tax efficient manner.

Other business protection policies to consider:


All financial advice is given by Penda Financial Management Ltd.

Penda Financial Management is authorised and regulated by the Financial Conduct Authority for advising on and arranging mortgages, insurance and personal investments. FCA number: 504162.