In the event of major illness, injury or death of a shareholder, what is your contingency plan?
Pays a lump sum upon the death or a specific medical condition happening to one of the shareholders. The purpose of the cover is to fund the remaining shareholders to buy out the claimants share in the business, upon a specific medical event occurring.
The circumstances that trigger the buyout are agreed on between the shareholders in conjunction with their legal & financial advisers, which then form a buy/sell agreement. The details within that agreement are the basis of what cover the business then insures.