About Us | Financial Links | Contact Us | Site Map You are in pfc > Business Owners Key Employee Protection Partnership/Shareholder Protection Business Owners The continued success or development of a business is often centred around key individuals or teams within a company. This could be the owner, partners, directors, sales team or other key employees who are the backbone of your business. In normal circumstances these valued individuals are recognised by how they remunerated, however what effect would their premature death have on your business now or in the future. Key Employee Protection A key person is any individual whose premature death or total disablement would cause financial difficulties for the business in which he or she works because his or her expertise cannot be easily replaced. Among the problems that could occur is the loss of profits, the expense of finding a replacement, etc. Key person insurance is the life cover taken out to provide protection against such losses. Partnership/Shareholder Protection Death has no respect for cash flow. Even in the event that sensible arrangements exist for passing on the shares of a deceased partner or director, it means money must be available at the right moment. If heirs are unlikely to want a stake in the firm, preferring its value instead, then money must be found. Equally, the surviving owners may find the participation of the deceased’s heirs unacceptable. Some firms even have an agreement where shares automatically pass to the remaining owners – so who compensates the heirs? Partnership and Shareholder Protection enables a payment to be paid into the right hands at the right time.