Partnership Protection is essential for most companies that are structured as a partnership. If anything should happen to a partner (death or serious illness) then your insurance cover would pay out a lump sum to assist the remaining partner(s). You could then purchase the deceased's share of the business. Without protection, raising capital to fund such an acquisition could be disruptive and problematic.
If a partner were to die, the share of the business would generally fall into the deceased estate and may be inherited by the spouse (or partner). This:
- May be unsuitable for the surviving business partner(s);
- May not provide for the deceased's spouse or family financially if they decided to sell their share.
The main reason to acquire this cover is to protect the ongoing operations of your company, and to look after the deceased's family by ensuring they receive a fair price for their proportion of the business.
A Safety Net to Keep You In Control