04/10/2023
๐ข I am looking to reach out and speak to business owners who currently do not have business protection insurance in place or any who haven't reviewed their existing policies.
Business protection insurance is a valuable investment for businesses of all sizes and types. It provides financial security, ensures continuity, and mitigates various risks that can threaten a company's success and longevity.
The four key areas are as follows:
Shareholder Protection ๐จโ๐ผ
These policies can be set up in a number of different ways and require expertise and planning. Shareholder protection allows business owners to buy shares back from a co-shareholder who is diagnosed with a critical or terminal illness, or dies. This policy helps surviving owners stay in control and minimises disruption to the business. A shareholder arrangement sets out how the shares should be valued and gives the surviving shareholders the right to buy the shares, or the outgoing shareholder the right to sell.
Key Person Cover ๐ทโโ๏ธ
Key Person Cover is designed to protect your business from the financial impact of losing a key employee (including owners & managers), whose death or illness would have a significant impact on the financial position of the business. A lump sum would be paid-out directly to the business and this can be used to cover the cost of any profit losses, replacement staff, or loan repayments. It will keep you afloat during a difficult time and could be the difference between your survival or closure.
Relevant Life Cover ๐จโ๐ฉโ๐ฆ
Relevant life cover is set up on a life-of-another basis, which means the cover is set up and paid for by the business, but the pay-out will go into a trust for the benefit of the employeesโ beneficiaries (including directors). They are tax efficient which provides a benefit for both the company and the lives assured.
Business Loan Protection ๐
Business loan protection insurance will provide funds to repay a loan, a commercial mortgage, or a directorโs loan if one of the business owners dies or suffers a critical illness. If a business owner dies or suffers a severe/ critical illness, lenders may have the right to demand that any loans or mortgages are paid back. This could represent a significant risk to business continuity and so it may be wise to protect the business by putting in place a business loan protection policy.
Feel free to get in touch for more information๐ ๐ฉ
