Business
Protection
Business protection insurance helps to protect a business from the financial effects of a key individual or individuals within the business dying or being unable to work at the business for an extended period due to critical illness.
Most businesses insure their premises, equipment and stock, but often overlook their most valuable asset – their staff. Business owners should consider which employees within the business are key to its continued operation and the implications of them being unavailable for work in the long term. Their absence could result in a drop in income and profits, affecting the ability to repay loans and overdrafts and meet other commitments such as supplier payments. Furthermore, new staff may need to be recruited which is likely to prove costly, time consuming and disruptive.
An important additional consideration for partnerships and limited companies with multiple shareholders is to make provision to buy out the financial stake of a partner or shareholder who has died or is unable to continue due to serious health issues.
We believe that businesses should look to insure its owners and key staff to provide financial security in the event of them no longer being in the business for the reasons outlined above.
There Are Different Kinds Of Cover Available, Including:
Designed to make a lump sum payment to the business in the event of death or critical illness of a key individual.
Designed to pay out a lump sum on death or critical illness of a partner. The proceeds allow the remaining partners to purchase the affected partner’s financial stake from their family or beneficiaries and to retain full control of the business.
Designed to pay out a lump sum on death or critical illness of a shareholder. The proceeds allow the remaining shareholders to purchase the affected director’s financial stake from their family or beneficiaries and to retain full control of the business.
A decreasing cover policy over a set term, designed to work alongside a repayment business mortgage or loan in the event of death and/or critical illness of an owner or key employee.
Get In Touch Today
At Best Advice, we are able to arrange this important cover to protect you and your business, tailored to your circumstances to provide peace of mind. Please get in touch if you would like to discuss the options and we’ll be delighted to arrange quotes.