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What is Business Protection?...

At the heart of every successful business are talented, dedicated and capable people, but none of us know what the future will bring. Research shows that 59% of businesses believe they would have to stop trading in less than a year after the death or critical illness of a key individual.

A key person insurance policy helps to safeguard your business against the financial impact of death, terminal illness (if the life expectancy is less than 12 months), or a specified critical illness (if chosen for an extra cost at the outset) of a key person.

Policy proceeds are written into trust and paid directly to the business to help replace the key person, and help cover any profit loss. The policy proceeds could be the difference between failure and continued success for the business.


Key Person Insurance

‘Key man insurance’ means the same thing as key person insurance, and refers to insurance policies that protect your business from the loss of a key individual – men and women – who are unable to work due to a critical or terminal illness, or have passed away during the term of a policy.

Put simply, key man or key person insurance is where a business insures itself against the financial loss it would suffer in the scenarios mentioned above. It's about giving your stakeholders the confidence that your business can survive and thrive even in the event of losing a key person through death or a specified critical illness.


Shareholder Protection

It's not a nice thing to ponder, but have you thought about what would happen if a shareholder in your private limited company, member of your Limited Liability Partnership (LLP) or partner in your partnership were to die, could you afford to purchase their share of the business?

If not, there could be significant implications for the future of your business. Shareholder protection can help you protect the ownership of your business in this situation by providing a lump sum to purchase the shares at a pre-agreed or market rate.


Relevant Life Insurance

Relevant life insurance is a cost-effective way to set up individual death-in-service benefits for staff in companies that are too small to consider setting up a full group protection scheme. It's also a good way to show current and future employees that you care.

The business takes out the plan on the life of an employee, with instances of director-level employees taking out cover for themselves. The cover can be tailored to your specific requirements.

A Relevant Life Plan offers a cost-effective way for an employer to arrange term assurance on the life of an employee, including directors. It's designed to pay a lump sum benefit to the employee’s family if the person covered dies or is diagnosed with a terminal illness, whilst employed during the term of the policy.


Arrange a consultation

For an informal chat about your business, succession planning and where you might need cover, feel free to call or email....All quotes are no-obligation.

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