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Business Protection for Small & Medium sized Businesses

business protection

Keyman Protection

A vital part of any business is the people that work there. So it can have a major financial impact if an important member of staff dies unexpectedly or is unable to work due to serious illness. Small and medium sized businesses are particularly at risk but fortunately,you can take out insurance which will replace the lost profits caused by the loss of a key individual.

Firstly you need to identify who a "Key employee" is in your business.

Do you have someone who has all your business technical expertise? Or maybe they are your in house accountant or top sales person?

There may be only one "keyperson" but quite often there will be three or four in a medium sized business.

What would happen if they die or suffer a critical illness?

  1. Reduced Sales
  2. Loss of turnover
  3. Unable to fufil your orders
  4. Difficulty in recruiting and/or training a replacement.

How can Keyman Protection Help?

A Keyperson is insured for life and/ or critical illness. In the event of a claim, the proceeds are paid to the company.

This money could then be used in several ways, for example:

  1. Recruiting or training a replacement
  2. Repay a business loan
  3. Compensation for lost sales

What is the cost?

Example

A 40 year old (non-smoker) male insured for 10 years for £100,000 would cost as little as £7.76 per month for life insurance or £35.75 per month for life and critical illness cover.

How much cover do you need?

Our consultants will calculate the level of cover required and research the market to find the most effective solution.

Who takes out the policy?

The company takes out the policy on the life of the Key person and the company therefore, owns the policy.

Shareholder/Partnership Protection

What is Director Share Protection? What can you do to protection the company? What is DirectorPartnership Share Protection?

What happens if a Director, who is also a shareholder in your business dies?

The company not only loses their experience and expertise but what happens to their shares?

Can the remaining shareholders/partners afford to buy the shares/interest in partnership?

The shares/interest in the partnership might pass to someone who has no knowledge or interest in your business.

That person might become a majority shareholder/partner and may be in a position to sell the company.

What can you do to protect the company?

  1. Each Director/Partner takes out their own life assurance policy to cover a specified amount.
  2. A written legal agreement is put in place which:-Provides that the remaining Directors/Partners have the right to buy the shares and ensure the inheriting spouse has the right to sell their shares to the Directors/Partners.

This is known as a cross-option agreement.

What is the cost?

Example

A 40 year old non-smoking male with no medical conditions could pay as little as £7.76 per month for a £100,000 of cover over 10 years. You will also need to pay your solicitor to set up the legal agreement. We can recommend one who is experienced in these matters if required.

For companies, we can also advise and arrange:

  1. Group Death in Service schemes
  2. Group Critical Illness Cover
  3. Group Income Protection
  4. Group Private Medical Insurance

These additional benefits could be used to help your company retain and attract key staff.

For protection insurance we offer products from a limited panel of providers.

 

Your home may be repossessed if you do not keep up repayments on your mortgage.

 

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Whether you are looking for the best deal on a residential mortgage, or if you are considering Life Cover, Critical Illness, Income Protection or a Healthcare Plan, we offer expert and impartial mortgage advice on the widest choice of products in the UK.