Let us help you find the right Partnership Protection Insurance Policy for your business

We compare...

Get a Free Quote

We help 100s of people compare quotes every week for Partnership Protection Insurance Policies from the UK's leading insurers.

The quotation service is completely FREE and you are under no obligation to purchase.

Personal Service

We are specialist independent advisers who provide free advice and quotations by email every day for Key Man, Relevant Life, Private Medical and other types of Insurance, whether for Directors, Key Employees Shareholders, Partners or on a personal basis.

Instead of pushy sales people, we offer a more personal service that provides a thorough market perspective and allows you to make an informed choice.

Get a Free Quote

Get Free Advice

Or call an independent adviser on 0800 316 6917
(8am - 8pm Monday to Friday & 9am - 2:30pm Saturday)

What is Partnership Protection?

In the interests of financial security, business stability and continuity, it is essential for partnerships to provide a safety net following the death of a partner. There should also be a partnership agreement in place that specifies that the partnership should continue on the death of a partner. If this is not in place then in England and Wales, on the death of a partner, the partnership is automatically dissolved. (Partnership Act 1890).

Partnership Protection is usually put in place to ensure that, on the death of a partner, their share of the partnership is available for the other partners to buy and there is sufficient cash available to buy the share.

This is normally done by:

  • Taking out a life insurance policy for each partner to the value of their share of the partnership.
  • Placing these life insurance policies in trust so that any payout is available to the remaining partners without any tax implication
  • Setting-up a Cross Option Agreement between the partners so that if the options are exercised, the holder of the share must sell them and the other partners must buy them

The risk of not setting up some Partnership Protection is as follows:

  • Their share may go to the deceased's family, which has no interest in the business and may prefer a cash lump sum
  • The Partnership or other partners may not have the resources to buy the deceased's share of the Partnership
  • The share may be taken over by someone who does not share the Partnership's objectives, and they may even be a competitor

We can advise you on the best arrangement for your Partnership, and put the necessary policies and trusts in place. We can also provide 'draft' cross option agreements.

The assessment and quotation service we offer is completely FREE and you are under no obligation to purchase.

Get a Quote Get Free Advice