Shareholder Protection Insurance

The sudden loss of a key shareholder can disrupt a company, but shareholder protection insurance can minimise this interruption to the business. We can assist your company with appropriate cover to ensure that shareholders own beneficiaries can be financially compensated for the value of the shares and share ownership remains with remaining shareholders of the company. It will give certainty to the business in the event of sudden loss of key shareholders.

Looking for an advisor near you for shareholder protection insurance in London & Essex? Mountview Financial Solutions is the right place for any kind of insurance and mortgages.

What is shareholder protection insurance?

Shareholder security cover is a form of company protection insurance that provides a lump sum to other business shareholders to purchase the share of a deceased shareholder or if one of the partners is unable to work due to a significant illness or injury. The shareholder protection plan is mainly a life cover but critical illness can also be added to the plan.

How does it work?

The amount of money the surviving partners will need to buy out their deceased or critically ill colleague’s equity in the firm is normally used to calculate the amounts insured. The amount of insurance the company will have to pay is determined by the extent of liability the insurer believes they are taking on by offering coverage. This is determined by the insured person’s age, way of living, and whether or not they have any pre-existing medical conditions.

Benefits of Shareholder Protection:

The main reason for purchasing shareholder protection is that it will assist your company through a tough period. The death or illness of a fellow shareholder may put a company’s future in jeopardy, particularly if it occurs suddenly.

Here are some of the main reasons you should take out a policy:

  • If a shareholder dies without a life insurance policy, their share of the company may be owned by an unwelcome survivor or sold to a competitor.
  • Businesses do not need to set aside funds or tap into their reserves to buy out an existing shareholder’s interest in the company.
  • When it comes to the transfer of shares, having a protocol in place will help ensure a smooth transition. This will assist in minimising customer interruption.
  • The beneficiaries of the covered individual know how much money they’ll get when the company’s shares are paid out by the other shareholder.
  • Shareholder security is essential for small companies because many of them can fail to collect buy-out capital on short notice. 

If you are looking to buy a shareholder protection policy our experienced insurance advisor will help you to find the right policy as per your need. To know more about shareholder protection insurance and its coverage please contact us for more information and to meet with one of our advisors or call us on 02080950120 or email us on


    Mountview Financial Solutions is a trading style of Rosemount Financial Solutions Ltd who are an appointed Representative of Quilter Financial Services Ltd and Quilter Mortgage Planning Ltd, which are authorised and regulated by the Financial Conduct Authority. Registered as a company in England and Wales No. 5676603. Registered Office: Rosemount House, 2-4 Chequers Road, Basingstoke, United Kingdom, RG21 7PU.

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