Partnership protection insurance is a form of life insurance set up to help business partnerships keep control of the company they have built in the event of a partner’s death or serious illness. As well as protecting the business, it also protects the interests of the deceased’s family and ensures that they are fairly treated and their needs are met under these difficult circumstances.
The cover your business requires will depend on how your business is set up. If you run a limited company then you would be looking for Shareholder Protection Insurance. This is where life insurance is taken out on the life of the company’s shareholders. If, however, your company is a Limited Liability Partnership (LLP) life insurance is taken out on the lives of business partners.
As well as life insurance, both kinds of policy can also include critical illness cover, which protects your organisation’s interests if a partner is no longer able to carry out their duties as a result of a critical illness diagnosis such as cancer, heart attack or stroke.
