Can the cover apply to protecting the value of the shares within the business?
Cover in respect of shareholder protection, providing protection for all major Shareholders within the business, can be provided following an accident or sickness to an insured person or accidental death which results in permanent disability. Death by natural causes is not covered. Should a company require appropriate funds to buy out one of its Shareholders following a permanent disability, shareholder protection can offer this solution. Sums insured per capita can be underwritten up to £800,000. The indemnity limit chosen per insured person should reflect the value of the shares held within the company. Advice on how such a value can be arrived at should be referred to the company’s accountant or solicitor.
