If you run your business in a partnership, have you thought about what might happen if a key shareholder passed away or became too disabled to continue working in the business? It is important to ask yourself how your family, or theirs, would be paid for their ownership in the business without it significantly impacting the finances of the remaining partners.

A Buy/Sell Agreement allows you to stipulate what is to happen to your business shareholding should an unexpected event occur such as death or disablement. The agreement requires the remaining owners to buy the afflicted owner’s shares and in a lot of cases, the cost of these shares is met through an insurance policy which was put in place to cover the death or disability of an owner.

How income protection insurance and Share Purchase Agreements go hand in hand

By initiating a Buy/Sell Agreement, any insurance benefits are legally obligated to be used for the purposes that the insurances were established for. What this means for you, is that should you unexpectedly die, your remaining business partner will receive the lump sum benefit and therefore be obligated to buy your shareholding from either your family or estate.

The benefits of Share Purchase Agreement and the appropriate insurance in place are extensive. For example, should your business partner pass away, you will be able to focus on dealing with the impact of the death of your partner without having to worry about how you are going to purchase their share of the business. Also, your partner’s family will be able to receive the funds from the buy out of their share of the business in a timely manner – relieving them of the task of finding a buyer who could well be an unsuitable fit for the company.

What happens if I have insurance and I do not have a Share Purchase Agreement?

Should you have insurance with no Buy/Sell Agreement in place, your business partner could spend the proceeds from a claim however they wish. This could leave the deceased’s family with a shareholding in a company that they cannot run and ultimately the shares could decrease in value and become worthless.

Putting an agreement in place

Should you wish to put a Buy/Sell Agreement in place, each owner will need to see a lawyer as every business situation is unique. Here at Business Insurance NZ, we commonly deal with the insurance cover that is put in place for the purposes of establishing a Buy/Sell Agreement and we have a partner referral programme with reputable industry professionals who have extensive experience with Buy/Sell Agreements. Should you wish to request a phone call to discuss your situation further please click here.

 

Julie Bach
Julie Bach
05:58 25 Nov 21
Kyle is very good at explaining through the complex policies and he is very patient. Great personality and always responsive to questions. Highly recommend him.
Michael Broughton
Michael Broughton
10:01 22 Nov 21
I used insurance comparison site to get an indication of options. Blake Sutton subsequently contacted me, introduced himself , explained his remuneration and gave me insurance suggestions to suit my needs. We had two follow up calls and Blake took time to meet me personally to review product I had chosen. Thoroughly professional, up front and honest about his recommendations.
RAKESH PILLAY
RAKESH PILLAY
23:55 11 Nov 21
professional and efficient service from Paul. He was informative and transparent and provided a wholesome service . greatly appreciate the service and the assistance in improving and amending our Insurance policy. Highly recommended and will definitely reach out again in the future. Thank you once again Paul for your help .Rakesh and Christine
Greydon Little
Greydon Little
22:49 10 Nov 21
Blake was easy to talk with and explained things well giving us confidence in his advice. Would recommend him to anyone that is new to looking at Insurances (like we were). Cheers Blake.
Matt
Matt
06:02 28 Oct 21
I was looking to save some money on my life insurance policy and Matt came up trumps! Excellent impartial advice, delivered so the lay person can understand, happy to talk through options and to answer questions. Top service and I'd highly recommend.
KALITTA IOELU
KALITTA IOELU
20:51 26 Oct 21
Matt is easy to understand and very helpful. Also gets back promptly and is a pleasure to have him as my family's insurance broker now ☺️
Boon Wah See
Boon Wah See
03:00 22 Oct 21
Benn is a very responsive insurance broker.I like his service, friendly chap. Will recommend him to other people in the future.Thank you.Cheers,Boon See
Jazz Martin
Jazz Martin
08:08 19 Oct 21
I found Hayley great. She worked with my time schedule always communicating what's going on and answered questions. She was helpful and nice.
Manisha Patel
Manisha Patel
22:47 07 Oct 21
Hayley provided my husband and I with excellent service in the process of finding which life and health insurance best suited us. This process consisted with many follows ups to ensure she could provide us with the best outcome, in which she exceeded our expectations. Additionally, she personally came to see us, as our working conditions prevented us from seeing her, which was very considerate of her. Overall Hayley goes above and beyond as a professional insurance broker.
Ruth Marshall
Ruth Marshall
07:49 04 Oct 21
Kyle was very helpful in finding the best policies to suit my needs, and within my budget. Great explanations for why certain options would possibly work better than others.
Gaurav Sharma
Gaurav Sharma
00:31 23 Sep 21
I appreciate the service from the Hayley and her guidance for us to choose the insurance which we were looking for, thank you for a job well done.
Luke Sid
Luke Sid
00:49 13 Sep 21
Matt was great. Was transparent and forthcoming about all my options and gave really helpful advice throughout the whole process that helped me to understand exactly what I was buying. Helped me to get the best quality and value coverage for medical and life insurance.
Chloe Blannin
Chloe Blannin
23:58 18 Aug 21
Hayley was so professional and so helpful! Made the entire process very easy! 😁 Even got my family to go through Hayley to change their insurance as her service was so good, easy and affordable!
Aimee Mitchell
Aimee Mitchell
00:59 18 Jun 21
Great experience working with Blake, he made everything super easy (even though my circumstances were not!) and communication was excellent - responsive and professional. I would definitely recommend.
Tracey Ferne
Tracey Ferne
22:18 17 Jun 21
Was a pleasure to do business with Blake, he was professional, super helpful and patient with our questions. Have been recommending Blake's services since our dealings.
Megan Hunter
Megan Hunter
05:52 03 Jun 21
I highly recommend Blake for any advice and assistance regarding income protection insurance. Exceptional communication and service, he explained everything extremely well and guided me through what I thought would be a very confusing decision. Super happy to have this sorted!. Thanks Blake.
Holly Moore
Holly Moore
20:44 12 May 21
Hayley was very professional throughout the process. Answered all my questions in a timely manor and eased any concerns I had. Reviewed and altered the quote to best fit me and my situation, multiple times. Appreciate it all, thanks Hayley.
curtis stallworthy
curtis stallworthy
01:43 12 May 21
Hayley was especially helpful & patient whilst we considered all our options, definitely recommend!
Simon Lean-Massey
Simon Lean-Massey
22:07 04 May 21
Hayley worked with us to ensure that we got the package that best suited our needs. Her advice was friendly, professional, and targeted, and she revised her advice as we provided a clearer picture of our needs. We are extremely happy with the service we received and would not hesitate in recommending her.
Sheherazad Bhote
Sheherazad Bhote
04:52 04 May 21
Hayley really listened to what I wanted and offered me the best insurance plan for my situation. No upselling! Great communication and patience as I navigated the minefield of life insurance. Highly recommended.
Baz Gallagher
Baz Gallagher
18:30 23 Feb 21
Alison is SUPER efficient and realy easy to deal with, her professionalism and attention to detail leaves you feeling at ease with your decisions under her guidance. Thanks again.
sheenagh brooks
sheenagh brooks
23:33 08 Feb 21
Hayley has been taking us through the whole changing of insurances and found us the best plan for our needs. She is very responsive and accommodating. Great Service.
Fraser Crum
Fraser Crum
07:57 04 Feb 21
Blake helps me with sorting my Income Protection when I went out as an independent contactor for the first time. Since COVID, the insurance industry are very wary of new contractors and very few will offer cover at all. Blake took the time to work with me and understand my needs and then develop a schedule of insurance policies that would provide me with the best cover over time whilst keeping everything at a very manageable price. I would definitely recommend Blake to anyone looking for insurance or wanting to review their current cover, and will definitely be working with him going forward to ensure our cover remains appropriate and effective.
Geoff Wiblin
Geoff Wiblin
03:45 18 Jan 21
Blake was very patient and clear with us on our options and what would suit our insurance requirements for our circumstances. Great communication and very easy to talk to. Not a "pushy rep".Thanks very much Blake, we appreciate all your time and effort on our behalf.
lazarus992
lazarus992
23:53 12 Jan 21
Blake was very helpfull and able to find someone to insure me after many many rejections from the big names compnays.
Roshni Kaur
Roshni Kaur
22:52 06 Nov 20
Daniel was great to work with. He was honest in helping me understand what I did and didn't need and how it all worked, and he understood my budget. Highly recommended.
Lydia du Toit
Lydia du Toit
06:43 04 Nov 20
I contacted Hayley and she responded promptly to my enquiry. Wonderful, helpful service and advice. Thank you for assisting us in a professional manner.
miriam sciascia
miriam sciascia
21:53 05 Oct 20
Nicole is fantastic. Im very busy as most of us are and Nicole did the hard yards for me. Highly recommend if you want someone on your side every step of the way.Thank you xx
Lisa McTavish
Lisa McTavish
22:35 03 Oct 20
Kelsey was fast and efficient in her procurement of new rates for me. She was happy to deal with me being unable to video chat due to work issues and got the job done quickly and easily.Thanks again.
A Google User
A Google User
20:30 23 Sep 20
Daniel made things simple, new his stuff and took away the hours of research I would have had to do to get the right insurance. I take comfort in the fact I didn't have to waste my time and have got the right products for my needs.
Paul Rose
Paul Rose
07:37 23 Sep 20
Hayley was very professional and knowledgeable in explaining and setting up policies for me. Highly recommend
Paula Callen
Paula Callen
23:19 17 Sep 20
Hayley was professional, discussed different options for what I want and kept me informed at all times. Would recommend her services.
celia dasler
celia dasler
07:55 30 Aug 20
Hayley was a pleasure to work with. Helpful efficient attentive. 10/10.
Andrew Harvey
Andrew Harvey
23:44 18 Aug 20
Nicole has made our transition from one insurance broke agency to hers so easy.Very happy with the professional manner in which she handled our policies - she also saw loop holes and saved us $$$ with the same policies we had with the other agency. Highly recommend!Thanks Andrew
Kim Griffiths
Kim Griffiths
04:54 15 Aug 20
Hayley was the best to work with and I loved the personal service and she was also so friendly and easy to talk and deal with.
Emma Clare
Emma Clare
20:47 04 Aug 20
Paul was efficient, friendly and forthcoming. Very happy with the service I received!
Rachael Manson
Rachael Manson
03:27 30 May 20
Alan has been brilliant to deal with and extremely patient as we worked through the changes that we were seeking for our life cover and income protection requirements.
Celia Grigg
Celia Grigg
23:36 21 May 20
Hayley was great, from responding to my initial inquiry to finalising my policy. She provided good information and communicated with me every step of the way - efficient, thorough and friendly. She went above and beyond.
Wang Emily
Wang Emily
01:59 19 Apr 20
Hayley has been very helpful and professional with her insurance services, she is committed to work for the best interest of her clients , friendly to deal with and flexible to suit clients’ requirement. Definitely Recommended!
Toko Ngakiau
Toko Ngakiau
20:19 29 Mar 20
I am very wary of random calls about insurance, but I found Daniel from IronOak to be very transparent and a pleasure to deal with.On all occasions he was able to come out and visit us. He explained in detail what we were looking at, and offered a number of comparisons. HIGHLY RECOMMENDED
Hannah Lawrence
Hannah Lawrence
21:00 15 Mar 20
Hayley was very efficient and always delivered on her promises. She put together a good package for me. I would highly recommend Hayley.
Jay Nimbus
Jay Nimbus
08:11 15 Mar 20
Daniel was great to deal with and made seemingly complicated decisions a lot simpler than I expected. I had been stressing about it for a while, wish I had got in touch sooner. Much thanks!
Annette Page
Annette Page
22:39 01 Mar 20
Prompt, professional, pragmatic advice and service. Many thanks.
CrazySmurf Azrial
CrazySmurf Azrial
11:20 28 Feb 20
Hayley was awesome to deal with, answered all my questions and followed up with me weekly to keep me informed throughout the whole process. It can be daunting but she made the process easy. She was easy to talk to and didn't feel pressured.Thanks Hayley for organising everything and helping me through the whole process.
Paul has helped me to find the best option for my family insurance. He made everything easy.
Trixie Lawton
Trixie Lawton
15:55 25 Dec 19
I found Hayley very pleasant to speak to and was explained everything in great detail and in easy terms
Kayleigh Price
Kayleigh Price
22:12 16 Dec 19
Paul was very easy to deal with and made income protection insurance seem much clearer. He gave sound advice, was efficient, friendly and I would recommend him to anyone.
Sunil Kadri
Sunil Kadri
23:23 01 Dec 19
Paul did alot of work to find the right policy for me, was very patient as I wavered, and even helped me with the right questions to ask of my insurer on their parallel policy. Overall he proved an excellent broker whom I'd gladly recommend, and go back to myself.
Dawn Randell
Dawn Randell
02:02 18 Nov 19
Thank you Hayley you were fantastic at sorting out the best choices for me
Sophie Speer
Sophie Speer
23:08 26 Sep 19
Blake was great to work with. He explained my options and sorted me out with the best policy. I really appreciated his expert advice and would recommend him highly.
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