People are critical to the running of a business and this is often overlooked.
The impact of an owner or key employee becoming ill or if they die can have a huge impact on the business. The immediate concern will be to make sure the business can carry on running until a replacement can be found, or until the colleague comes back to work. Cashflow can become a major headache.
Business Protection lets owners plan for the unexpected by providing cover so that the business can keep running with minimal disruption.
Loan Protection
Where a plan is taken out to repay a business loan in the event of death or critical illness of a partner, member or sole trader.
Key Person Protection
Most business owners will protect their assets such as premises, plant and machinery, vehicles etc. However, they may not have given any consideration to losing a Key Person in the event of death or becoming critically ill.
In any business a number of people could be regarded as ‘key’ including partners, members, senior employees or the owner. A loss of any one of these could have a serious financial impact on the company and protecting them could be essential to the future of the business.
Partnership /Shareholder Protection
In the event of death of a partner or shareholder the beneficiaries of the estate will usually be their family. They may have no experience of running a business and may not be able to contribute to it in any way and in these circumstances, they will usually want to withdraw their share of the capital.
Having partnership /shareholder protection in place means that the surviving partner/s will have enough funds to ensure that the family receive fair value for that interest, and they will then be able to continue to run the business.
Key Person Income Protection
Key Person Income Protection provides an income to the business if the person you are insuring can’t work due to illness or accident.