Ray McHugh, IFA - Companies should consider business protection planning

Thursday 31 October, 2019

Most businesses will have a formal Directors or Partners agreement in place. One of the measures we suggest for effective business protection planning is to have the business owners insured personally. 

How Lonsdale Services can assist you with business protection

Our experienced team of independent financial advisers have been involved in offering financial advice to business owners, shareholders and their professional connections to help them protect their business.  We work with you to assess your firm’s requirements and arrange suitable business protection insurance for your needs.  

Call Lonsdale Services for more information on business protection

For more information contact Ray McHugh in our Lonsdale Wealth Management Barnet office on 0208 275 1161 or email enquiries@lonsdaleservices.co.uk

Why would you need to insure the Directors or Partners of a business?

Business owners will have other assets that their company owns such as premises, machinery, plant and cars. However, in most cases the most valuable asset the business has are its owners.

The importance of Directors Share of Partnership Protection

If a business owner or Director dies one issue that the other business owners face is whether they have the means and capital to purchase the deceased Directors share of the business outright. 

Would your company shareholders have the capital to purchase the share of the business outright? 

Would there be a risk of shares being inherited by other family members with little interest or knowledge of the business?

Would there be a risk of the shares being sold by a family member to someone you would not want to be a shareholder in the business?

Directors Share or Partnership Protection – How it works

Business Protection insurance provides a lump sum in the event of a shareholder’s death (or in some cases diagnosis of a critical illness) which allows the surviving shareholders/partners to buy the shares without the stress of having to find the capital. It enables the control of the business to remain in the right hands and it can continue to operate and run efficiently.

 

 

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