It’s important to have the right business protection policies in place in order to protect your firm in the case of the unexpected loss of an individual who is a key element in the running of your business.

Such integral roles could, for example, include a business owner or a director of the board. What would happen if a key figure in your company was diagnosed with a critical illness, or should lose their life? How would you manage their absence financially?

Getting the correct policy in place now will help to ensure that the right arrangements can fall into place should the worst happen.

Our experts will find the right policy, with affordable premiums, and the best protection for your company’s individual needs by conducting across the board research of current policies available on the market.

Shareholder protection

In the event of the death of a company shareholder, shareholder protection will help your business to continue to operate with minimal upheaval or major intervention on your part.

Insurance for this protection can be taken out in different ways. There is the option of this being taken out by each company shareholder, or it can be taken out by the company as a whole policy that covers the lives of all shareholders.

If a shareholder dies the proceeds of the policy are then used to help buy the share of the business owned by the deceased individual member.

Business loan protection

Should a key business employee die, or be diagnosed with a critical illness, this protection will allow for their proceeds to be used to pay off outstanding loans.

Examples of this include bank loans or director loan accounts that need to be repaid in the event of a death.

Key person insurance

Similar to other protection policies, above, this insurance also protects businesses against the financial effects of either the death of, and or, the impact of the critical illness of a key person within your organisation.

This protection is used to cover the cost of a temporary replacement for the key person, or help cover loss of profits. The proceeds will be paid directly into your business.

Relevant life cover

Relevant life cover provides company directors with protection without the need to take out a scheme for all employees.

Set up by the company itself, this cover provides protection – in the form of death in service benefits – by paying out a tax-free, lump sum either on the death of the person insured, or on the diagnosis of a terminal illness.

This lump sum is paid directly to the policyholder’s family, or their financial dependants.

This cover is often taken out by smaller companies – who may not have been able to secure terms for a group policy – but is also often used as additional life cover for the beneficiaries of a company owner on top of existing group arrangements.

Protection plans typically have no cash in value at any time and cover will cease at the end of the term. If premiums stop, then cover will lapse.