Business Protection Insurance

Business protection insurance. It can be used to cover business loans or protect against the loss of a key person, partner, member or shareholding director if they're diagnosed with a critical illness, terminal illness or they die.

What is business protection insurance

The people in a small business are critical. If you’re an owner and a key employee dies or is too ill to work, it can have a massive impact on the business. You’re likely to be concerned about making sure the business will continue to run until a replacement can be found, or until the colleague returns to work. Cash flow could become a major worry.

Putting business protection insurance in place gives you the security of knowing that your business can survive in seriously challenging circumstances.

Why a business needs protecting

Your staff are your most valuable asset. That’s why the death or illness of a key employee or owner can have a major impact.

You may already be insured against major catastrophes, accidents and other events. However, if you don’t insure your employees, you may still be putting yourself (and your business) at risk.

When your strength is in your staff, you should consider covering them.

By taking out business protection cover, you can help your business continue to survive during difficult times.
The death or critical illness of a key employee or a co-owner could lead to:

• A fall in sales
• Delays completing existing contracts (and possible penalties)
• A lack of confidence in the business from a bank, suppliers, customers and other employees
• Loans (that may be called in sooner than expected)
• Suppliers may demand payment upfront
• Customers may choose to go elsewhere
• An increase in recruitment costs, head hunting fees, or paying to train a replacement
• Cash flow issues (in extreme circumstances, such as needing to buy out a co-owner, the business could even end up in someone else’s hands)
• A delay on product launches

With business protection insurance, you can keep control and protect your business from these consequences.

Our solutions

We offer four main solutions, which are all available as either Term Assurance or Critical Illness with Term Assurance policies:

We also have a dedicated specimen business trust and associated documents that can be used in conjunction with our products.

We cannot advise on whether putting a plan into a trust would be suitable in your particular circumstances and would recommend that you take professional legal advice on the suitability of these specimen documents.