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Smart directors insure their most valuable assets

: The Key Staff

Shareholder & Key Person Business Protection

Preventing Company Collapse Due To Serious Illness or Death

Owning a business can be a very rewarding experience. But what happens if a business partner dies or falls seriously ill?

Much will depend on the type of business that you have and its legal entity.

The most common structures are :

  • Sole trader

  • Partnership

  • Limited company

Unless there has been some advance planning, the chances are that what remains may simply collapse or worse still end up in the wrong hands.

If you are a business owner, business insurance is vitally important.

It is a simple process of planning for what you want to happen if you or your co-owner (if you have one) die or fall seriously ill.

What happens when a business owner dies depends on the type of business you own and run .

business-collapse

Types of businesses



  • A sole trader's business automatically comes to an end.
    The business may still have a value – stock, buildings, or assets such as equipment and vehicles and goodwill, but the business itself will legally cease.

  • A partnership may come to an end if the partnership agreement does not set out that the business should continue - its a sad fact too that most partnerships fail to even effect a partnership agreement.

  • A limited company continues but the shares held by the business owner will pass on to beneficiaries through their estate.

These scenarios are invariably not the outcomes that you would seek.

Watch the following videos to learn more about keyman insurance and how it can protect your business.

The Dean Stockwell video clearly demonstrates the impact of a sudden stroke can have on both the individual and the business - at aged just 47 Dean Stockwell was that person - essential viewing for all business owners.

How Keyman Protection Works

A short tutorial on
Keyman insurance

Dean Stockwell Never Planned On A Stroke

Deans discusses his stroke
and how it affected him and his business

Understanding the different business structures

The issues facing sole proprietors, partnerships and limited companies are similar in concept but there are significant differences between each of them.

In order for you to gain an understanding of these differences use the buttons below.

Serious Illness



It is not just the death of a business owner that can stop a business. If a business owner suffers a critical illness such as a heart attack, stroke or cancer, it may not be possible to continue in the business either temporarily or permanently as in the case of Dean Stockwell in the video above.

A suitable critical illness insurance policy is probably the best way to provide protection against the financial consequences of having a serious illness. These policies pay a cash lump sum upon diagnosis of a range critical illness's or disabilities.

The policies are normally written in trust for the other business owners, and there needs to be a formal legal agreement between the business owners about the circumstances in which the share in the business should be transferred.

What should I do now?



Start the process of protecting your livelihood and your business and contact us today.

We help advise, guide and effect the plans that you need to ensure your business interests are safeguarded.