We use cookies to make sure your experience is as good as it can be. If you’re happy with that, just continue using the site. Learn more about cookies.

skip to main content

Share & Partnership Protection

Share Protection and Partnership Protection can help business owners keep control of their company if one of them dies or is diagnosed with a critical illness; it also ensures the deceased’s family are fairly treated.

The cover you recommend depends on the business set-up:

  1. Share Protection is for limited companies (life insurance taken out on the life of the company’s shareholders)
  2. Partnership Protection is for partnerships and limited liability partnerships (life insurance taken out on the lives of the business partners)

Both can also include our critical illness cover (this is available for standard cover only) – which is one of the most comprehensive in the market.

Key features of Critical Illness Cover include:

  1. Pays a cash lump sum on death or one of the specified conditions during the term, and survives for at least 14 days
  2. Covers up to 87 conditions including 49 full payment, 38 additional payment conditions (20 of these additional payments are covered under 1 additional payment condition – ‘Less advanced cancers’)
  3. Broader claim definitions so we can pay more claims or pay them quicker
  4. Enhanced claim payments for 17 conditions
  5. Flexible cover options.

Important information for Critical Illness cover

  • Your client is covered for the conditions listed in the policy conditions and no others
  • If your client stops paying their premiums, they won't get any money back and their cover could stop
  • To make a critical illness claim, the person insured must survive for at least 14 days after being diagnosed
  • We won't pay a claim if your client dies as a result of intentionally taking their own life in the first 12 months of the policy

Our Enhanced children’s cover policy is not offered as an option on Business Protection Life and Critical Illness cover.

For more information please read the product profiles on Business Protection Life Insurance and Business Protection Combined Life and Critical Illness.

Setting up cover

How the cover is set up will depend on the type of business. You should recommend Share Protection to limited companies and Partnership Protection to partnerships and limited liability partnerships.

To find out more about these options including information on cross option agreements and premium equalisation, see our adviser brochure.

Business type

Who should be insured


How to set up the cover

Limited companies


The remaining business owners keep control of the company (control isn’t passed onto anyone else).

The deceased's estate can sell their shares at fair market value. Without a life insurance backed arrangement (including a cross option agreement) the future of the business and the possibility of the estate being treated equitably can be thrown into doubt.

The arrangement is tax-efficient.

Own life: each shareholder or partner takes out a plan on their own life which is written in trust for the other business owners. Each shareholder or partner signs a cross option agreement. The remaining partners use the money paid under the claim to buy the shares.

Life of another: if there are just two business owners, they can take out life-of-another plans on each other. The owners also sign a cross option agreement. The claim is then paid to the remaining business owners who use the proceeds to purchase the deceased’s shares.

Limited Liability Partnerships




How much cover to recommend

Valuing a company can be difficult and surviving shareholders will need enough money to purchase the lost business owner’s shares. In the absence of an accountant’s valuation, as a guide, you should consider looking at the following when setting the cover.

  1. Net profit from the last 3 years
  2. Assets (such as property, vehicles, specialist equipment)
  3. Liabilities
  4. And price earnings ratio (assuming future performance)

In general, the amount of cover you recommend should equal the market value of each owner’s share of the business.

Use our business valuation calculator as a guide for setting the sum assured.

Quote and apply supported by intelligent online underwriting and 10% LAUTRO uplift

Options list icon

Business Protection options

Find out more about the type of businesses we cover and the policies available.

More on Business Protection options

Calculator icon

Tools and calculators

See all our business protection calculators available to simplify your client conversations.

View all tools and calculators

Team icon

Business Protection support

Our team will make sure that all your Business Protection applications are dealt with quickly and efficiently.

More on Business Protection support

Telephone handset icon

Why choose LV=

Your clients can access a range of resources and expert advice, as well as a number of value added services.

More on why to choose LV=

Liverpool Victoria Financial Services Limited, registered in England with registration number 12383237. County Gates, Bournemouth, BH1 2NF, UK