Business Protection
Business Protection
What is Business Protection Insurance?
Business protection is a range of insurance policies which can help protect businesses from financial losses in the event of key people – business owners or key employees – dying, being diagnosed with a critical illness or being unable to work due to disablement.
The insurance can be taken out to protect partnerships, shareholders, sole traders and key employees, although how the insurance is set up will depend on your specific business needs.
A business protection insurance policy can be set up to insure more than one life. In most circumstances, in the event of a claim being made, the cash lump sum would be paid out to the business or remaining owners of a business.
There Are Four Types of Business Protection Insurance:
Business Loan Protection
Definition - A type of life insurance, bought by businesses. It will help pay off business debts if the owner dies. Critical illness cover option also available.
Who is Covered - Anyone who has guaranteed these debts – usually the owner, but can be a partner or director of the business.
Who Benefits - The business. Debts are repaid at a difficult time.
Key Person Protection
Definition – A type of life insurance bought by businesses. Pay-out provides funds to help find replacement staff, and cover lost profit streams. Critical illness cover option also available.
Who is Covered - Any key member of staff. It could be a chief executive, finance director, salesmen, director or owner.
Who Benefits - The business. Funds available to help find suitable replacement or replace lost profits.
Share Protection
Definition – A type of life insurance bought by businesses, which ensures there are funds to help purchase shares if an owner/shareholder dies. Critical illness cover option available.
Who is Covered - Owners of the business.
Who benefits - The proceeds are paid to the remaining owners so that they can buy the shares for a fair value from the estate and thus retain control of the business.
Relevant Life Plans
Definition - An individual life insurance policy that company directors and owners can buy through their business, if they are classed as an employee.
Who is Covered - Employees of a small business.
Who Benefits - The family of the director or employee that it was taken out for.
Speak to one of our experts who will discuss what cover is appropriate for your business.
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The guidance and/or advice contained in this website is subject to UK regulatory regime and is therefore restricted to consumers based in the UK. Willoughby Bespoke Protection Limited is an appointed representative of PRIMIS Mortgage Network, a trading name of First Complete Limited. First Complete Limited is authorised and regulated by the Financial Conduct Authority. Copyright © All Rights Reserved.