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Shareholder Protection

Safeguard your business against the loss of a shareholder

Shareholders are crucial when it comes to your business ownership. If the worst should happen and either you or your fellow shareholders were unable to work due to illness or injury, major trauma, permanent disability or death, your business ownership could be severely impacted. Putting in place protection for shareholders, combined with a robust succession agreement, may help your business avoid or minimise the impact.

This might suit you if…

  • you’re a business owner, partner or shareholder
  • a shareholder was unable to work due to illness or injury, major trauma, permanent disability or death and the remaining owners would need to borrow to buy out the interest of the co-owner who has left the business
  • you need a financial solution to help execute a succession agreement for your business

Here’s what you get:

  • A lump sum payment at an agreed amount if you choose to take out Trauma, Life or Disability insurance to cover you or the remaining shareholders if any of the events covered were to happen. 
  • A monthly payment up to an agreed amount (maximum $10,000) if you choose to take out key person protection cover in respect of a shareholder that is a key person and that person is unable to work due to illness or injury.

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or call us on

0800 267 263

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8:00am - 5:00pm

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How much your cover will cost depends on a number of factors, including your shareholders’:

  • age
  • gender
  • smoking status
  • occupation
  • health and family medical history
  • level of cover. 

To get a quote, speak to an Adviser who can take your specific objectives, financial situation and needs into consideration.

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What insuring shareholders can help protect against

If you or one of your fellow shareholders suffered a specified major trauma, permanent disablement or death, what would happen to your business ownership? Putting in place protection for your shareholders can provide financial support to help protect against:

  • the remaining owners having to borrow to raise funds to buy out the interest of the co-owner who has left the business
  • the remaining owners being forced into business with the spouse or dependents of the co-owner if they die
  • the forced sale of the business to raise enough money to pay out a deceased owner’s estate.
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Succession planning

Insuring shareholders, along with a robust succession agreement, can help your business minimise disruption. A succession agreement is a contract between co-owners, which outlines what will happen to each owner’s business share if they leave.
A succession agreement usually details:

  • the circumstances in which an owner’s share of the business will be sold to the other owners
  • how that share will be allocated among the other owners
  • how the amount payable to the owner selling their share will be determined and funded in case of death, permanent disablement or major trauma.

Your Adviser may discuss the financial solution you need to help execute a succession agreement for your business and recommend that if you do not have a succession plan, that you organise one through your solicitor as part of your plan to manage business risk.

Having the funds available to underpin your succession agreement is vital. One efficient and effective way to achieve this is to make sure you have the right protection for your key people – like shareholders.

It can assist to fund the buyout of the co-owner’s share under the terms of your succession agreement. This helps minimise the potential instability that can occur following the loss of a shareholder.


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If you want to safeguard your business ownership, it’s good to talk to an Adviser. They can talk you through the different options and help you decide which suits you and your business best.

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Important information

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This information provides a general summary of the key features of the products described and is subject to change without notice. Terms, conditions, criteria, definitions and exclusions apply as set out in the relevant policy document and schedule. In addition, waiting periods, qualifying periods, no claims periods, and/or survival periods may apply. Full details are set out in the policy document and schedule, which is available on request. Applications for cover are subject to approval by AMP Life Underwriting. 

The content on this website is for information only. The information is of a general nature and does not constitute financial advice or other professional advice. Before taking any action, you should always seek financial advice or other professional advice relevant to your personal circumstances. While care has been taken to supply information on this website that is accurate, no entity or person gives any warranty of reliability or accuracy, or accepts any responsibility arising in any way including from any error or omission.

A disclosure statement is available from your Adviser, on request and free of charge.