What is Co-Director Insurance designed for?
A successful business depends on the close co-operation and experience of the directors. The death of one of the directors can have serious impacts on both the surviving directors and the family of the deceased. Normally the surviving directors would wish to buy back the shares from the family of the deceased but may not have the money available.
Who should take Co-Director Insurance out?
The directors themselves
Why should you take out Co-Director Insurance?
Surviving directors can lose control if a deceased director owned over 50% of the company.
As the deceased director’s successor:
- May be unfamiliar with the business
- Could have cash flow problems after losing the deceased’s income.
By putting in place Co-Director Insurance there is no ambiguity regarding the ownership of the business should a shareholding director die. And certainty is good for business
Benefits of Co-Director Insurance for your company
- Gives company directors peace of mind
- Means the deceased’s successor does not have to become involved in the business
- Means the deceased’s successor receives fair value for deceased share of business
- Can also cover directors becoming seriously ill
Hennelly Finance will advise you of:
- The type of cover you need.
- The length of time you need it for.
- The amount of cover you need.
- The most competitive premium in the marketplace.