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Shareholder Protection Insurance

Amid the time-consuming, complex demands of running a company, little attention is paid to what might happen if a shareholder dies or becomes seriously ill.  In the interests of financial security, business stability, and continuity - particularly for private limited companies where there may only be a small number of principal shareholders - it is essential to provide a safety net in the event of the loss of a shareholder. This could be necessary if:







shares go to the deceased’s family, which has no interest in the business and would prefer a cash sum

the company or other shareholders may want to retain control by buying lost shares - but may not have the resources to do so

the shares may be taken over by someone who does not share the company’s objectives - and may even be a competitor

Jacobs Financial provides independent financial advice to shareholding directors and partnerships.   We arrange shareholder protection plans that allow for sufficient funds to be available in the event of the death or serious illness of a shareholder.  This ensures that the company can continue to operate uncompromised, while the ongoing shareholder, or their family, receives fair compensation.


Another benefit - and one of the most important elements to your business in the event of a shareholder’s death or serious illness, is to ensure continuity.  Shareholder protection sets out the procedures and policies so that you retain control and have the necessary funds to do so.  Through this form of protection you can: 

arrange for the most appropriate transfer of shares to surviving shareholders, or the company, at a fair commercial price

set up insurance policies to provide the funds to purchase the shares

avoid having to draw on funds set aside for other purposes

prevent the sale of shares to hostile parties or competitors

documentation to enable all transactions to be made tax-efficiently

ensure the dependants of the critically ill or deceased shareholder are financially secure

maintain business stability and continuity

retain confidence of employees and customers


If you would like to know more about the services we offer, please contact us at: