Although many Partnerships have an agreement in place which outlines what happens in the event of the death or incapacity of one of the Partners, most Partners don’t fully understand the extent of their potential liability or the legal ramifications for a Partnership if this happens.
More importantly, most Partnerships don’t have the financial provisions in place to meet their obligations or goodwill payments under such circumstances.
By putting suitable cover in place, we can ensure the Partnership always has the capital required to meet the financial obligations of all the Partners, who remain jointly and severally liable.
Much like Shareholder Protection, Partnership Protection enables the surviving Partners to maintain control over the Partnership under such circumstances.
Frequently asked questions
What is Partnership Protection Insurance?
Partnership Protection Insurance is an auto accrual arrangement that supports other business partners if another passes away. If a partner dies, the deceased partner’s business interest automatically transfers to the remaining partners, allowing the other business partners to keep control.
Partnership Protection Insurance provides the funds needed for business partnerships to continue in the event that a partner passes away. The cash is reimbursed to the deceased partner’s beneficiaries to the value of their inherited business interest.
Who is eligible for Partnership Protection Insurance?
Partnership Protection Insurance is suitable for businesses with traditional partnerships and limited liability partnerships.
Get the right type of Protection for your Partnership
Call Plus Protect and ask to speak to one of our advisers for Partnership Protection built around you.