Partnership protection is business protection insurance, it is in place to protect both partners should one fall critically ill or die. It provides the funding needed for the remaining partner to buy the shares of the deceased and take full responsibility of the company. Partnership protection is there to protect your investment. If your partner dies the partnership is dissolved and the company could become unable to trade. All the time and money previously invested would be wasted. Partnership protection allows you to buy the remaining shares and make sure that your company is secure from competitors.
Who Needs It?
Any co-owned business should have partnership protection. It is an important asset to make sure that the company is secure and that the investment for both parties is protected. It also has the added benefit of making sure that your family will be financial stable should anything happen to you.
Benefits of Partnership Protection
There a range of benefits which partnership protection provides. It provides an instant lump sum to the remaining owner which ensures that the business can continue to run with a minimum amount of disruption. This means that you can be sure your company shares aren’t going to be sold to a reckless party. It also ensures that your investment is safe and will guarantee your family a financial sum.
Who is Protected?
Both you and your partner are protected. Should one of you become critically ill or die the other will have the funding to make sure the business is secure, and can provide the family of the deceased with an immediate buyer for their share of the business.
Why it’s Important?
It’s important because not only does it protect your business partner but it allows your family to have an instant buyer for your half of the company. This gives them instant access to important funding and allows your business partner to continue running the company quickly and smoothly, without the pressure of working alongside your beneficiary who may not have your expertise or knowledge.
It is important that both partners have this form of insurance to guarantee that they are both protected. It’s also important that they both agree on the amount the shares are worth, as this will be the sum the insurance is in place for. All information should be written up including that the sum paid out on your insurance should be used to by the other partners share of the company, this is known as a cross option agreement.
Where You Should Buy it?
At QuoteSupermarket.com we have a range of specialist business advisers who can find you the best business protection insurance available. They will compare the best UK providers to bring you a range of quotes which meet the needs of your business. We can save you time and money just simply fill in our short form and we will do all the hard work for you. Best of all our service is completely free.
You May Also be Interested in Relevant Life
If you are a company director make your life insurance tax efficient with a relevant life policy. The insurance premiums are paid by the business on your behalf. Relevant Life is an allowable business expense so its tax deductible and can result in savings for a business when compared with a typical life policy. We can also compare a range of brands to find you the best deal with relevant life cover. So you can make sure you’re family are completely secure should anything happen to you.