What is Shareholder protection insurance?
Shareholder protection insurance is an important part of any business financial plan, as it provides a safety net for shareholders during times of loss or hardship. It allows the surviving shareholder(s) to purchase the deceased shareholder’s share of the business from their estate, providing them with cash instead of ownership in the business.
This ensures that the dependants of the deceased shareholder have a willing buyer and access to much-needed funds. The implementation of shareholder protection insurance is an important step for businesses looking to protect their assets and secure their future.
It also serves as a testament to the company’s commitment to its shareholders and provides them with peace of mind that their investments are safe.