Imagine for a moment that one of your partners became seriously ill, or perhaps even suffered a serious accident and was killed. Do you know for sure that the side of the business he or she owned will go into the hands of a capable individual? And if that partner lives but elects to leave the company—do you have the money on hand to buy him out?
If you’re not sure how to answer these questions, then it’s time to take a look at Partnership Insurance. With Partnership Insurance:
- A partnership is not dissolved automatically should one of the key partners die, allowing time for proper arrangements.
- You’re protected against competition that tries to buy part of your business.
- Companies can retain some semblance of normalcy during the transition to a new partner or buyout.
- You’re insured from any damage done to your company by a new and careless partner.
- There’s no need to use funds you were saving to provide recompense to the dependents of the deceased.
Probably the biggest most single worry of any business partnership is the risk that one of your partners may die or suffer a critical illness and their share of your business being handed over to someone else who may have very little interest in the business or could even run the risk of being reckless with their share of the company.
Also, should a partner suffer and survive from a critical illness but can no longer work then they may want compensating for exiting the partnership. A partnership Protection Insurance policy will provide the company with a pre arranged scheme which will provide any surviving partners the necessary funds to buy out the deceased’s share in the company or to compensate them or their dependents. Partnership Insurance can also be used to cover against the retirement of any partners
Here are the benefits and why it is essential to have Partnership Insurance:
- Provides arrangements to ensure that your partnership will not be automatically dissolved upon the death of a partner.
- Enables your business a certain level of continuity and to trade as normal during any transitional periods.
- Protects your business from any competitors buying into your company or any other hostile parties.
- Protects your company against any careless, reckless or disinterested inheritors.
- Avoids you having to dip into any funds which may have been allocated for other purposes to enable you to compensate the deceased’s dependents.
To request an indicative quotation on Partnership Insurance products or for more information please complete the form below and a Qualified Regulated Expert will contact you.