Partnership Protection Insurance | Business Protection

A back-up plan for businesses

When a business partner passes away, legally, the business must be dissolved unless there is an alternative agreement in place.

What is partnership protection insurance?

Partnership protection insurance is an agreement that a business partnership doesn’t need to be dissolved if a business partner dies. Instead, their shares can be bought from the partners’ beneficiaries. Insurance pays in a lump sum to support the purchase.

Although it's not nice to think about losing a business partner, having partnership protection insurance in place can benefit both partners and their beneficiaries.

Partners can protect their business and buy back their shares, while beneficiaries can sell their inherited shares at a fair market price.

What should I keep in mind?

If you have multiple business partners, the insurance payout is usually shared equally. Every partner can buy back an equal value of the shares.

Insurance providers will want to learn about you and your business partners' health before offering insurance. Premiums will increase if a shareholder is older, has a history of smoking or has an existing health condition.

There are a number of conditions to agree to before partnership protection insurance can be approved. Trulife advisers can help you to understand policy terms and conditions.

You'll need to consider:

The level of cover your business needs
The terms and conditions of your agreement
Whether you need add-ons like critical illness cover.

How can Trulife help?

As experts in business insurance, Trulife advisers make the search for insurance easy. We'll get to know your business and talk you through your options. We work closely with specialist providers, so we can often help you access great offers you won't find elsewhere.

We'll offer support on:

Explaining the potential benefits and drawbacks of partnership protection insurance

Putting the right protections in place for your company

Finding suitable insurance products for you to choose from

What next?

If you’re thinking of getting partnership protection insurance, talk to Trulife. We’ll quickly connect you with a member of the team and help you safeguard your business.

Let's chat