Bluecare Financial Services

Business Insurance
Insure or not Insure, Is the risk not being insured, worth it
                             Bluecare Business Insurance
 
 
Contingent Liability
 
This plan is a variation of Keyman assurance
 
Get a quote from us here..


It is designed to protect a company against the potentially disastrous effects of the death of a director/shareholder who has secured certain loans or credit facilities on behalf of the company and, in addition, protects the deceased director/shareholder's estate from a claim by the creditor.

Most private companies (including close corporations) are compelled to use the personal assets of its director/shareholders to secure loans and credit facilities. This will very often require the director/shareholder acting as surety and co-principal debtor.
The death of the director/shareholder could result in the loan or credit facility being re-negotiated or terminated. In addition, the director/shareholder's estate could be adversely affected as a result of the obligation assumed. As surety and co-principle debtor, the creditors would be entitled to look to the deceased estate for repayment of the loan or cancellation of the facility. In this respect a deceased estate
is a soft target because it is usually quite liquid. Should a creditor lodge a claim against the deceased estate this will clearly disrupt the deceased's estate planning and in all probability will cause a major liquidity problem. Contingent liability assurance ensures that the company has sufficient resources to settle such claims and protect the deceased estate.

 
 
 
 
 
 
 
                
 
 
Adres: 697 Amandelboomroad
            Doornpoort, Pretoria, 0017