As a way to protect your business and ensure no potential issues relating to shares later down the line, one of the most significant benefits of shareholder protection is peace of mind. If a shareholder dies with shareholder protection in place, there can be no confusion over beneficiaries or sales of shares – making it easier for everyone involved to handle the estate following death.
In the case of illness or injury, shareholder protection can help to ensure a smooth transition and take the stress away from family or loved ones. In addition to the benefits for the shareholder and their family, this process also benefits businesses directly. For small businesses, the funds to buy out shares may not be available or cause immediate hardship. Shareholder protection insurance helps to prevent this issue by providing the money needed for buyouts without delay.