When a company suddenly loses its manager or one of its key staff, the risk for the company’s long-term turnover and future is considerable. At Verspieren, we support many companies to help them assess this risk, one which is still all too often underestimated. We propose bespoke support to help you come up with the best measures to protect your business.
Insurance for managers and key people
Key people insurance: begin by assessing your situation
Company managers and their key staff are all too often under-insured. Our main objective is therefore to optimally assess the level of loss likely to occur in the event of death. This estimate of the level of capital to be insured is produced working closely with you, based on precise financial criteria (turnover, earnings, the value of shares, etc.).
Among the options to be examined together: a benefit in the form of capital which can be spread over 1, 2 or 3 financial years. Based on this information, we will draw up a dedicated schedule of conditions and carry out a tender in the company managers’ insurance market to obtain the best prices and cover for you.
Secure your legal arrangements and avoid additional premiums being charged
An area requiring particular vigilance: the beneficiaries’ clauses must be perfectly drafted, failing which they may be declared invalid. Whether we’re talking about a death insurance policy or a related policy, our partner, the company Francis Lefebvre, will be involved in helping you securely prepare your policy. For example, it may sometimes be a good idea to introduce a testamentary provision concerning subdivision, depending on your professional or family related priorities.
Additionally, your application for insurance to cover company managers or key people will necessarily involve medical checkups, requested by the insurers. The results may sometimes be used as an argument to demand a higher premium. In this case, we will negotiate the best terms for you. This includes negotiating proposals for derogations, reducing excess premiums or having them removed altogether.
A tailored shareholders’ agreement
Whether confidential or otherwise, the clauses of any shareholders’ agreement must be drafted very carefully. Those related to death and in particular to the sale and transfer of shares must be the subject of an in-depth examination and even regular updates. We work with you to insure your partners for an amount enabling them to acquire your shares.
Additionally, it can often be a good idea to check or modify your testamentary provisions. Under certain conditions, by exploiting the most favorable legal provisions, these clauses will provide better compensation conditions for your partners.