Ownership protection is often insurance that is forgotten or not valued. Ownership protection can come in a few forms as your business ownership requires protection from a variety of circumstances.
Shareholder and partnership protection cover gives business owners the funds to buy out another owner if they die and with some policies if they are seriously ill to prevent a share of the business being sold.
The other form of ownership protection is management liability which can cover directors, officers and senior managers who can be held responsible for their actions. These policies cover the cost of defence and settlements. Below we have taken a look at what a variety of insurers offer to protect owners.
The table below gives a quick comparison of the top UK providers for ownership protection.
| Company | Maximum cover | Shareholder protection | Partnership protection | Management, director and officers liability |
|---|---|---|---|---|
| Aviva | Not stated | Yes | Yes | No |
| AIG | Not stated | Yes | Yes | No |
| RSA | Not stated | No | No | Yes |
| Allianz | £10 million | No | No | Yes |
| QBE | Not stated | No | No | Yes |
| LV= | Not stated | Yes | Yes | No |
| NFU Mutual | Not stated | Yes | Yes | No |
| Legal & General | Not stated | Yes | Yes | No |
| Markel direct | Not stated | No | No | Yes |
| Travelers | Not stated | No | No | Yes |
| CNA Hardy | Not stated | No | No | Yes |
| Vitality | Not stated | Yes | Yes | No |
| Scottish Widows | Not stated | Yes | Yes | No |
* The facts and figures included here come from each company’s website and were accurate at the time of writing but may have since changed. Also, please keep in mind these may not be apples to apples comparisons as each provider offers different solutions. This guide should be used as a starting off point for more research on your part.
Below we profile each of the companies’ services and features in a bit more detail.
Note companies are ranked in no particular order and this no way indicates one solution is better than another. Moreover, SmallBusinessPrices.co.uk is not regulated by the FCA and so we can’t recommend any particular product/company as being better than any other.
Topics
1. Aviva
Some of the features and benefits of Aviva’s ownership protection.
- Shareholder and partnership protection
- Available to public and private limited companies, limited liability partnerships and individual partners of a partnership
- Choice of cover based on amount and length of term
- Choice of fixed, increasing or decreasing cover
- Premiums can be paid annually or in a lump sum
- Optional total permanent disability cover
- Offer a range of additional options
- Premium waiver available
- Straightforward claims process
- Offers an enhanced Business Protection Promise
Aviva provides Business Life Insurance Options that can be used to cover a variety of business risk and help businesses to overcome major stumbling blocks. Through this policy, you can cover key people, shareholders, partnership or business loan protection.
Aviva’s shareholder or partnership protection policies protect the remaining business owner/s if something happens to another owner. They cover public and private limited companies, limited liability partnerships and individual partners of a partnership. You can choose the level of cover and the length of the term to suit your business and add on a variety of optional extras.
2. AIG
Some of the features and benefits of AIG’s ownership protection.
- Business protection for share purchase and partnerships
- Also offers key person and business loan protection
- Share purchase protection covers life with or without critical illness
- Partnership protection covers life, terminal ill or critical illness
- Ensures that you have funds to buy out the shareholder or partner that has died
- Security for business owners
- Maintain business continuity
- Retain ownership of your business
- Demonstrates succession planning
- Can only be purchased through an independent financial advisor
AIG offers a broad range of ownership protection products which includes share purchase protection, partnership protection, key person protection and loan protection. Their share purchase and partnership protection products provide security and protection from losing the business as a result of one of the shareholders or partners dying or becoming critically ill.
AIG’s share purchase and partnership protection policies enable the surviving partner/s or shareholders to purchase the share of the business that belongs to the person that has died or critically ill (if selected). This allows the business to continue and for the owners to retain ownership of the business.
3. RSA
Some of the features and benefits of RSA’s ownership protection.
- Management protection
- Available to directors, trustees and insured persons
- Covers against personal liability for wrongful acts
- Safeguards your customer’s financial stability
- Can be purchased on an aggregate or any one claim basis
- Includes past, present and future directors and officers
- Legal representation costs and the investigations needed are covered
- Extensions to the standard cover are available
- Can include fines, penalties and compensation
- Can also include corporate manslaughter or homicide act
RSA provides ownership protection insurance in the form of management protection which is designed to protect the owners of the business or their senior management including directors, trustees and other insured persons. This provides cover for personal liability for wrongful acts and will provide legal representation costs and any investigations that required.
RSA’s management protection can be purchased either as an aggregate or any one claim basis to cover the businesses past, present and future directors and officers. They also offer an extension to their cover which can include fines, penalties, compensation, pollution defence costs, PR consultancy costs and employment practices liability.
4. Allianz
Some of the features and benefits of Allianz’s ownership protection.
- Directors and officers cover
- Peace of mind to make tough decisions without fear of repercussions
- Management liability cover for businesses with a turnover up to £200 million
- Personal liability cover for directors, officers and managers
- Covers against claims that arise from decisions and actions
- Includes reimbursement of any third-party compensation
- Offers reputational and post reputational costs
- Covers employee dishonesty in regard to theft
- Offers an employment practices helpline
- A range of optional cover is also available
Allianz provides ownership protection cover in the form of a directors and officers policy which gives businesses management liability cover that offers personal liability cover for directors, officers and managers. The policy provides cover against any claims that arise from the decisions and actions taken by the business’ management personnel.
Allianz’s directors and officers cover are available to UK based businesses with a turnover of up to £200 million. The policy covers the reimbursement of any third-party compensation costs as well as reputational and post reputational costs, employee theft and company entity liability. They also offer an employment practices helpline and a variety of optional extras.
5. QBE
Some of the features and benefits of QBE’s ownership protection.
- Comprehensive directors’ and officers’ liability cover
- Protects against financial losses resulting from actual or alleged wrongful acts
- Covers defence costs and expenses
- This includes investigation costs and extradition costs
- Company liability cover is limited but the director’s liability is not
- Tailored cover provided by experienced professionals
- Mitigates against the increasing trend to hold a company’s management personally responsible
- Will get to know your business to understand your risks
- Offers complementary insurance
- Expert claim support
QBE provides ownership protection cover that protects directors and officers against liability from financial losses resulting from wrongful acts whether is an actual act or alleged. In today’s current climate where the increasing trend is to hold directors and officers personally responsible it is essential to protect yourself as a company’s liability can be limited but the director’s liability is not.
QBE’s directors and officers policy provide protection that will financially cover the cost of defending the individuals concerned and the resulting expenses including investigation and extradition costs. In order to provide comprehensive cover to your business, they will get to know your business and tailor a policy to your needs.
6. LV=
Some of the features and benefits of LV=’s ownership protection.
- Business protection products
- Share protection
- Partnership protection
- Key person protection
- Offers cover for life, terminal illness and critical illness
- Protection to buy out the share of the business from the person affected
- Fixed level, increasing or decreasing cover available
- Usually required to be written into a trust
- Optional extras available
- Children’s critical illness included
LV= provides a range of ownership protection insurance that includes shareholder protection, partnership protection and key person protection that covers the life of the insured party. Shareholder and partnership protection cover the business when a shareholder/partner dies, diagnosed with a terminal illness or is critically ill.
These policies provide protection so that the surviving partner/shareholders can buy out the shares of the person affected giving the business stability and continuity as well as providing for the family as they will receive the money from the purchase of the shares. The policy will need to be written into a trust where the other owners are the beneficiaries.
7. NFU Mutual
Some of the features and benefits of NFU Mutual’s ownership protection.
- Business protection against the loss of key personnel
- Covers the loss of a business partner or key employee
- Includes death and critical illness
- Helps to ensure the long-term financial security of the business
- Creates a succession plan useful for lenders
- Choice of shareholder or partnership protection
- Enables the remaining owners to buy out the other share of the business
- Also provide loss of key employee cover to help pay for losses and expenses
- Financial support when needed to keep the business afloat
- Offered in partnership with AIG
NFU Mutual provides its ownership protection products in partnership with AIG. These products include shareholder protection, partnership protection and key person cover which all give a financial payout to the business if the person insured dies or becomes critically ill (depending on the cover).
NFU’s shareholder and partnership protection policies provide cover to help businesses to continue without one of the owners and gives the remaining owner/s the funding to purchase the deceased or ill person’s share. Key person cover gives a financial payout if the insured person dies or is critically ill so that the business can mitigate the costs of losing the key person.
8. Legal & General
Some of the features and benefits of Legal & General’s ownership protection.
- Offers a range of business protection
- Key person protection
- Partner, director and limited liability partnership share protection
- Business loan protection
- Cover that allows your business to continue to operate
- Funds to buy out an owner’s share when they die or are terminally ill
- Optional critical illness cover
- Financial support to cover losses and expenses when a key person dies or is terminally ill
- Available as term assurance or whole of life protection
- Safeguard to ensure business continuity
Legal & General provides a range of insurance cover to protect business owners. Their ownership protection products cover share protection for partners, directors and limited liability partnership. They also provide key person protection and business loan protection.
Legal & General’s business protection products can provide term assurance and whole of life protection that offers financial support when businesses need it the most. Share protection enables the remaining owners to purchase the shares of the individual that has died or critically ill if selected. Key person protection and business loan protection provide cover that will help protect the business from financial loss.
9. Markel Direct
Some of the features and benefits of Markel direct’s ownership protection.
- Offers directors and officers liability cover
- Available to limited companies
- Covers legal costs and expenses
- Includes the costs of any investigations
- Provides PR crisis management service
- Covers wrongful acts committed by directors and officers
- Includes actions brought by liquidators, HMRC, HSE, police and serious fraud investigations
- Protection that covers health and safety breaches
- Helps to meet regulatory requirements
- Cover starts at just £5 per month
Markel direct provides ownership protection insurance that covers directors and officers’ liability to limited companies where the directors and officers themselves are not protected by the company being limited. Their cover provides financial support in the event of any wrongful acts that are committed, and where the directors or officers are held liable. It also helps businesses to meet regulatory requirements where the cover is needed.
Markel direct’s directors and officers policy will cover the legal costs, expenses and any investigations that are needed. The policy covers a range of litigation circumstances which include investors and shareholders claims, liquidation, HMRC investigations, HSE investigations, police and serious fraud investigations.
10. Travelers
Some of the features and benefits of Travelers’ ownership protection.
- Directors and officers liability and management liability insurance
- Covers directors, officers and senior managers
- Provides support and protection to help managers lead with confidence
- Includes regulatory investigations
- Covers against claims from shareholders, employees and third parties
- Wrongful acts include breach of trust, breach of duty, neglect or error
- Comprehensive cover that leaves no gaps
- Gives business leaders peace of mind
- Covers defence, settlements and judgements
- Flexible products that can be tailored to businesses’ needs
Travelers’ ownership protection products provide two flexible types of cover which are directors and officers liability insurance and management liability insurance. These products provide protection to company directors, officers and senior managers to help them lead a business with confidence and peace of mind that they are protected.
Travelers’ two products offer protection against claims from shareholders, employees and third parties that result from wrongful acts by directors, officers and senior managers and cover the costs of defence, settlements and judgements. These wrongful acts include any regulatory investigations, breach of trust, breach of duty, neglect or error.
11. CNA Hardy
Some of the features and benefits of CNA Hardy’s ownership protection.
- Offers a range of management liability
- Directors and officers liability
- Employment practices liability
- Available to businesses that are public, private, not-for-profit and charities
- Protects the financial wellbeing of businesses and their directors
- Covers claims from investors, creditors, other third parties and employees
- Includes regulatory investigations
- Also includes health and safety investigations
- Provides cover for employee disputes
- Claims service recognised by industry awards
CNA Hardy provides a range of management liability insurance that protects owners from litigation costs. They offer both directors and officers liability and employment practices liability to most businesses as it is available to public, private, not-for-profit and charitable organisations.
CNA Hardy’s management liability products are designed to protect the financial wellbeing of both the businesses and their directors with each policy type providing different types of cover that benefit the business or the directors. Their policies cover claims from investors, creditors, other third parties and employees. It covers regulatory investigations, health and safety investigations and employee disputes.
12. Vitality
Some of the features and benefits of Vitality’s ownership protection.
- Offers shareholder and partner protection cover
- Provides a cash lump sum if an owner dies or is severely ill
- It is designed to minimise the disruption to the business
- Provides capital to buy the other owners’ share
- Cover that helps business owners to maintain control of their business
- Suited to partnerships, limited partnerships and limited companies
- Offers a range of complementary products
- Delivers peace of mind
- Provides business continuity and succession planning
- Policies are sold direct
Vitality offers business owners protection in the form of shareholder and partnership protection cover which protects the remaining partner or shareholders if one of them dies or is severely ill and unable to continue in their role. In these circumstances, the family of the deceased or ill may need to sell the share of the business which is why this cover is required as it provides a lump sum to purchase the other share of the business.
Vitality’s shareholder and partnership protection are designed for businesses that are partnerships, limited partnerships and limited companies. The cover allows the business to stay in control of the surviving owners’ share and gives the business continuity.
13. Scottish Widows
Some of the features and benefits of Scottish Widows’ ownership protection.
- Offers shareholder protection
- Offers key person cover
- Policies that help business continuity
- Protection for business owners including partners and directors
- Covers death, terminal illness and critical illness
- Helps business owners to retain ownership of the business
- Agreements would be in place to enable surviving owners to buy out the other’s share/s
- Key person insurance gives financial cover for the loss of the person to keep the business running
- Also provides loan protection
- Other complementary covers available
Scottish Widows provides a range of ownership protection products that can help businesses to continue with minimal disruption as the result of a death, terminal illness or critical illness of an owner or key person.
Scottish Widows’ shareholder protection is available to owners, partners and directors to help them retain control of the business if another owner dies or is seriously ill as the cover provides a lumps sum that will buy out that person’s share. Key person cover gives businesses financial support in the event of losing the insured person and it protects against a loss of profits and helps recruit a replacement.
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