Shareholder Protection Insurance for Company Bug Members

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Company Bug and Drewberry have a partnership to help Company Bug readers set up Shareholder Protection.

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Drewberry has helped hundreds of companies across the country with Shareholder Protection. It’s an insurance policy that pays out a lump sum to the business to buy back the shares of an absent shareholder.

We offer advice on all aspects of this cover, including:

  • Which of the three ways to purchase cover is right for your business
  • How HMRC taxes premiums and payouts
  • Whether you need to equalise premiums
  • Any updates required to your articles of association.

Why Shareholder Protection?

In most cases, the remaining shareholders want to buy back the shares of an absent shareholder to retain control of the company. However, what if the company can’t afford to?

If a shareholder passes away, their shares typically form part of their estate. They then usually pass to their family, out of control of the company.

Should critical illness force a shareholder to exit the business, that shareholder retains their shares. However, they’re unlikely to be able to help run the company due to their ill health.

No Shareholder Protection? The Consequences…

If the shareholder dies and the family inherits the shares, the business could get a new sleeping partner. They may not be able to contribute to running the business but are nonetheless entitled to a share of the profits.

Alternatively, the family could look to monetise the shares by selling them, perhaps even to a competitor.

Where the shareholder becomes seriously ill, they may need cash. This could be to adapt their home or fund early retirement. They may also therefore want to sell their shares.

In both situations, the remaining business owners face losing control of the company if they can’t raise the funds to buy them back.


I had a great experience with Drewberry, they have a lot of knowledge and expertise with life insurance and income protection and were able to advise me and arrange suitable products. Highly recommend.

Lachlan Mellings
12/08/2020
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Contact Us
Head Office & Pensions and Investments
Senator House
85 Queen Victoria Street
London
EC4V 4AB
Personal Insurance & Accounts Payable
Telecom House
125-135 Preston Road
Brighton
BN1 6AF
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Our Core Principles
  • 1You Come FirstWe are a client focused business who always aim to put you first.
  • 2We are ExpertsTo provide you with the best advice, we need to know our stuff!
  • 3We are HumanWe are real people with feelings who are here to help you.
  • 4We are ProfessionalProviding a 5-star service requires a professional approach to everything we do.
  • 5We are here to EducateWe don't believe in sales, we are here to educate so you can make informed decisions.
Finalist - Moneyfacts AwardsFinalist - Cover Excellence AwardsHighly Commended - Protection Review Awards
Proud member of AMII (Association of Medical Insurers & Intermediaries)Proud member of Money Advice ServiceProud member of UnbiasedProud member of BIBA (British Insurance Brokers' Association)

If you are unhappy with our service, we have a complaints procedure, details of which are available upon request. If you are unhappy with how your complaint has been dealt with, you may be able to refer your complaint to the Financial Ombudsman Service (FOS). The FOS website is www.financial-ombudsman.org.uk.

Drewberry Ltd is registered in England and Wales. Companies House No. 06675912

Drewberry Ltd registered office: Telecom House, Preston Road, Brighton, England, BN1 6AF. Telephone 0208 432 7333

Drewberry Ltd (Financial Conduct Authority No. 505473) is an Appointed Representative of Quilter Wealth Limited and Quilter Mortgage Planning

Limited, which are authorised and regulated by the Financial Conduct Authority.

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