Shareholder Protection Insurance helps business owners safeguard their company if a shareholder dies or becomes seriously ill. The policy provides a lump sum that enables the remaining shareholders to buy back the affected person’s shares, keeping control of the business within the company and ensuring financial stability during a difficult time.

The arrangement is typically supported by a cross-option agreement, allowing a smooth transfer of ownership and fair value for the outgoing shareholder’s family. Premiums can often be structured tax efficiently, and the payout is usually free from corporation tax and income tax.

For limited companies and partnerships, shareholder protection ensures continuity, avoids disputes, and provides peace of mind that ownership stays in trusted hands.