Shareholder protection.
Keep your business in the right hands.
If a fellow shareholder died or became seriously ill, who would own their shares? Shareholder protection helps make sure control stays with you.
What is shareholder protection?
Shareholder protection is a combination of insurance and a legal agreement. It provides funds so that the remaining shareholders — or the company itself — can buy the shares of a shareholder who dies or, if included, is diagnosed with a critical illness.
The outcome is good for everyone: the business stays with the people who run it, and the shareholder's family receives a fair value for the shares in cash, rather than an interest in a business they may not want.
How shareholder protection can help.
Features vary between insurers. We'll explain exactly what each option includes.
Keep control
Prevent shares passing to people who may not share your vision for the business.
Fair value for families
The outgoing shareholder's family receives cash for the shares.
Funds in place
The money to buy the shares is available when needed — no scrambling for finance.
Supporting agreement
A legal agreement sets out how and when the shares will be bought.
Life and critical illness
Protection can cover death and, where chosen, critical illness.
Business stability
Gives staff, customers and lenders confidence in continuity.
Who it's for.
- Limited companies with two or more shareholders
- Owner-managed businesses
- Family businesses planning for succession
- Shareholders who want certainty for their families
Things to consider
- A properly drafted legal agreement is essential — we can work with your solicitor.
- The cover amount should reflect a realistic, regularly reviewed business valuation.
- Trust arrangements and tax treatment need careful set-up.
That's exactly why advice matters — we'll talk you through the detail.
Get a personalised shareholder protection quote
Free, no-obligation and tailored to your circumstances.
Getting covered is easy.
Getting the right protection shouldn't be complicated. Here's how we help.
Talk to us
Tell us about you, your family or your business in a free, relaxed conversation — by phone, video or in person.
Get a clear recommendation
We research the options and explain what we recommend, why, and what it costs — in plain English.
Cover in place, and beyond
We handle the paperwork, keep your cover under review and are here to support you if you ever need to claim.
Shareholder Protection FAQs
How does shareholder protection work?
Each shareholder is insured, and a legal agreement sets out how their shares will be bought if they die or become critically ill. The policy pays out the money needed to complete the purchase.
Do we need a legal agreement?
Yes. An agreement — often a cross-option agreement — is normally put in place alongside the policies so that the share purchase can happen smoothly. We'll work with your legal advisers on this.
How much cover should each shareholder have?
Usually enough to buy their share of the business at a fair valuation. We'll help you review the valuation and keep cover up to date.
Can partnerships and LLPs have similar cover?
Yes. Similar arrangements, often called partnership protection, are available for partnerships and LLPs.
Let's talk about shareholder protection.
Book a free, no-obligation consultation. We'll explain your options clearly and help you choose with confidence.
Free initial consultation · No obligation · Friendly, plain-English advice
The information on this page is for general guidance and isn't personal advice. All cover is subject to the insurer's terms, conditions, exclusions and underwriting. Tax treatment depends on individual circumstances and may change.