Key Person and Shareholder Protection

Why key person and shareholder protection?

As a business owner, people are your biggest asset; and your biggest risk. Many business owners haven’t thought through what would happen in the event that something happens to a shareholder, partner or other key person within the business. We can help you plan for:

  • Loss of profits
    Over half of businesses think they would cease trading in less than a year if a key person died or became critically ill1.
  • Shareholder protection
    If your business partner was too ill to work, or died suddenly, it’s important to make sure firm control of the business is maintained..
  • Succession planning
    If you lost a key person in your business, how long would it take you to find a replacement? This loss could also result in damage to client relationships.

How we can help

Mercer Jelf Financial Planning have a dedicated team of Business Protection professionals, with many years’ experience of helping business owners protect their businesses, key employees and themselves. 

From carrying out a business health check through to reviewing your current succession plan, we can ensure you have the right plans in place should the worst happen.

Find out more from our dedicated team

Need advice? Our team can help.
Send us a message or call us on the number below.

1. L&G Business Protection Report April 17

Succession planning

Key people come in all shapes and sizes: business owners who set the strategic direction; people who have influence on profit like sales or research directors; specialist employees; or people who have relationships with third parties like banks or suppliers. We can help you to put plans and protection in place to ensure that if any key people are lost, your future is secure.

Tax efficient solutions

We work with leading insurers to find optimum cover for your key people, and ensure that any paperwork and processes are completed as smoothly as possible. By putting a Business Will in place in conjunction with appropriate protection, we can help you to ensure that shares and money end up in the right hands.

Frequently asked questions

What type of insurance do I need?
We would source the appropriate type of insurance cover in terms of cost, insurer, and features and benefits.
What level of cover do I need?

We would help you assess this – and it would depend on factors such as your turnover to help calculate the potential loss you would incur if the worst happens.

Why do I need this cover?
To help ensure the future survival of your business.
What happens if I don’t have this cover?
Your business could fail, banks could call in loans, investors and clients could lose confidence, staff morale could suffer.
Doesn't my bank cover me against this risk?
No. Banks typically tend to protect their loan and not their customer’s business.
Who qualifies as a key person?

Someone who is critical to the operation of the business – for example, a sales director responsible for key relationships, or an Research & Development Director responsible for future product design.

How are you qualified to help me?
We are a firm of Chartered Financial Planners with 25 years’ experience in helping businesses put appropriate life insurance protection in place. This is a specialist and potentially complex area, and you need a trusted source of help and advice.