Risk Management

Work with professional advisers on how to protect shareholders and key employees

Corporate Risk Management

Want to understand how to protect your business? Give the Up Financial team a call.

Funding Your Unanimous Shareholder Agreements

Your shareholder agreement should outline what happens in the event a shareholder becomes disabled and can no longer work, if they become critically ill, and if a shareholder should pass away.

In most cases the corporation is responsible for coming up with the funding to buy-out the shareholder. Do you currently have assurances in place that the corporation will be able to come up with the capital?

The most common and cheapest solution is corporately owned insurance on shareholders. Most business do not keep the necessary capital in cash on reserve to protect from the “what if” scenarios. Do your business currently have enough capital to write a cheque to any shareholder or their families should they pass away or become disable?


A typical USA will require that upon passing, the shares of the deceased partner be sold back to the corporation or remaining shareholders. This is to avoid going into business with your business partner’s new found love. Life Insurance on a shareholder for the value of their shares means that the corporation will never be impoverished in the event a shareholder passes away.


When a shareholder passes away, the corporation receives a Death Benefit from the insurance proceeds. A cheque can then be written to the family of the deceased for the value of the shares. Harmony is maintained the company remains whole.

There are multiple ways to structure criss-cross or buy-sell insurance. Contact us to find out which scenario makes the most sense for your business.

Key Person Protection

If an employee or owner were to pass away or become disabled and unable to work, the benefits payable from a key person life or disability insurance plan could help you to:

1. Recruit, hire, and train a replacement

2. Pay off debt and manage creditors

3. Easy lender concerns about your company’s financial health

4. Reassure customers, employees, and investors that your business will survive

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