Keyperson assurance - “Why Use Network Ventures for your Keyperson assurance”
Our team have arranged policies on over 1500 corporate finance driven transactions – we believe that this is significantly more than any other organisation in the UK.
By working solely on corporate finance transactions, our team have developed unrivalled expertise on the use of Keyperson Assurance in venture capital transactions.
Corporate finance professionals, i.e. venture capitalists, banks providing debt, corporate finance accountants/advisers or lawyers, have introduced every single one of the 1300 transactions that our team have worked on.
Keyperson assurance is catastrophe cover. Our team ensures that all policies, which are used, are appropriate and fully hedge the risk.
Our team will ensure the executives and their advisors benefit from regular communication. Giving you peace of mind that the policies will be in place at completion.
We have never failed to meet a condition precedent.
This is an assurance policy on the life of a shareholder. The policy can be established in a number of different ways, one option is for the Company to own the policy.
The policy is designed to pay out on death or critical illness and to give the Company funds to buy in its own shares: hence uplifting the surviving shareholders shareholding on a pro rata basis.
When writing a policy to provide shareholder protection it is important to consider the pre-emption rights under the Articles of association or Shareholder Agreement to avoid conflict.
In simple terms shareholder protection assurance provides a sum of money, at the right time, in the right hands, to buy out the shares of a deceased shareholder.
We will review Managements Service Agreements and ensure all risks are hedged and there is no outstanding liability to NewCo or the Investor.
Employee Benefits Due Diligence
During the Corporate Finance transaction, employee benefits can get lost and not thought about, our team at Network Ventures can review all the benefits on your behalf and ensure that at completion, new schemes or a review of the previous schemes have been concluded and actions taken to ensure the risks are hedged.
We can and have reviewed for existing clients their complete employee benefits package, including death-in-service benefits, Income Replacement, Private Medical Insurance and Group Pensions. We have many corporate partnerships where we review these on an annual basis and administer their schemes on their behalf. They are regularly reviewed and as a consequence have saved clients many thousands of pounds.
Directors & Officers Liability Insurance (D&O)
Many businesses and directors consider this the most sensitive insurance protection for themselves.
When, was your policy last checked?
These are the typical issues our health checks uncover:
- No protection for 'Entity' claims
- No protection for Employment Practices claims
- Aggregate Limits – whereby the policy limit can be eroded by claims against fellow directors
- Other errors e.g. incorrect name on policy – seen twice in recent health checks
Specialist Insurance Due Diligence
- Desk Top Reviews and
- Full Due Diligence Reports
Why Use Us?
Many insurance companies now own insurance brokers who could be asked to carry out the due diligence on what are essentially their owners’ products.
This must give rise to conflict of interests.
Our Specialist insurance experts are NOT owned by an insurance company. We are owned by the staff and never will be owned by an insurance company.
This is a result of many mergers in the insurance broking industry. Thus it is more and more common to be asking insurance brokers to carry out due diligence on one of their own clients.
Our Specialist insurance experts have a modest market share and this is extremely unlikely to occur with us.
Our Specialist insurance experts being a staff owned business has few overheads and on costs of our competitors. Thus our fees for due diligence are highly competitive.
Some of the above services we have available to us are separate and distinct to those offered by St. James's Place.