Keyman Shareholder Protection
Most businesses recognise that the main resource that they possess is their people.
With Keyman Insurance, a business can ensure that if a key member of staff or indeed one of the principals of the business is incapacitated or dies, the business is protected from the loss of income which is likely to occur.
There are several ways of providing the correct level of cover, and Kudos can discuss with you the implications and costs of this.
Many businesses do not recognise the need for this type of cover, and it can often take an event such as critical illness or death of one of the principals to bring the problem to light.
With shareholder protection, the individuals in the business recognise that through a cross option agreement they will have the option to purchase the shares of their director/principal in the event of their death or perhaps critical illness.
It is very important that this option payment is set up in the right way, and Kudos will involve legal advice in this for our clients.
The benefit would pay out in the event of death or critical illness to perhaps the estate of the principal thereby providing the funds for their share of the business.
It may be recognised that an individual share is worth say £200,000 but could the business actually afford to pay this out if required to.
Not many businesses will be in this position and therefore the eventuality can be covered by way of policies.