Whether you are a Sole Trader, Partner, or Director of a Limited Company, your death or that of a co-Director/Partner may cause significant disruption to the business.
 
Often problems occur because the deceased's Will leaves interests in a partnership, or a share in a limited company, to someone who may not have the interest or ability to play an active part in the business (e.g. a spouse).

Various insurance based solutions are available to buy the deceased's family out, but it is essential that such arrangements do not conflict with the companies Articles of Association, or the Partnership agreement in the case of a Partnership.
 
Candour offer a complete service to assess the need for assurance and put in place arrangements which are both tax-efficient and appropriate to the Company or Partnership (with the co-operation of a solicitor where required).

 
Key Employees
Most businesses insure themselves against such eventualities as fire, theft, or catastrophes. However, the death or long term absence of a key employee such as an IT Manager or a Sales Director can be far more costly.
 
The death of such an individual would generate recruitment costs and there may be a substantial loss of profit. Similar expenditure would be incurred if a key individual were unable to fulfil their function within the business due to accident or illness.
 
Working with your business, Candour will design and implement an insurance based solution to deliver funds to replace lost profits, should the worst happen to one of your business` key employees. We can also offer knowledge of the sometimes complex options and tax treatments involved.

Double Option Agreements - Shareholder Protection

These are similar to Key person insurance policies but protects the Partners of a company.

For example if a company is worth $2 million and consists of two Partners, they would both insure themselves for $1 million each. In the event of one dying normally the spouse would be entitled to his estate which would include the share of the company. However, often the spouse has neither the expertise or inclination and consequently sells her share of the company to the surviving Partner. 

The proceeds of the insurance policy ensures the surviving Partner is in a position to buy out the spouses share.

 
Loan Protection
When business partners take a loan to further the business, it is usual that the loan is in all the partner’s names. If one partner dies, the remaining partners inherit the full responsibility for the loan.

Candour offers advice on a range term assurance policies that, should a partner die, protect the remaining partners and the business.

Liability Insurance

Liability insurance is designed to offer specific protection against third party claims, i.e., payment is not typically made to the insured, but rather to someone suffering loss who is not a party to the insurance contract.

For more information on insurance policies to protect your business, just click here to provide us with your preferred contact details and an overview of your company's requirements.