Business Protection

Protection, continuity and stability for your business

 

Business protection insurance is designed to protect your business financially in the event of key people being diagnosed with a critical illness or dying. 

Regardless of the size of your company, ensuring continuity and stability is important should the worst happen. In most businesses there are likely to be a few key individuals who are vital to its ongoing success, be that a director, manager or someone with specialist technical expertise. Key person insurance can help protect your business by providing a lump sum payment if a key employee passes away or is diagnosed with a critical illness. The money can be used to minimise disruption and financial loss within the company. It is not however intended for the employee or their family. This would be covered by group protection and/or personal protection policies such as life insurance and critical illness cover, which we also advise on.

Similar challenges can arise when a shareholder dies. Their shares will usually be passed on to a family member, who often seeks to sell them back to the company. But what if the other shareholders are unable to raise the necessary funds? This may result in the family selling them elsewhere, which could be devastating for the remaining owners, who may risk losing control of their business. 

Shareholder Protection insurance is designed to provide business owners with the funds to purchase shares from one another, should one of them become critically ill or pass away. It ensures that the shareholder or their family receive the full amount that their shares are worth, in a timely fashion, providing some much needed stability during what is likely to be a difficult transition. In the case of partnerships this type of cover is referred to as Partnership Protection, but works on similar terms. How this insurance is arranged, as well as any tax implications, will depend upon the nature of the business, but your adviser will help to ensure that it is set up correctly. 

We can also advise on Business Loan Protection, which is a policy designed to cover an outstanding corporate loan, similar to personal life insurance taken out to cover a mortgage. In the event that the person responsible for repaying the debt dies or falls critically ill, the policy will pay out so that the business can pay off the loan. 

We work with businesses of all sizes, including sole traders, so book a free consultation to discuss what type of cover best suits your needs. 

 

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