Business Protection Insurance
Continuity of your business
Businesses naturally insure their premises and equipment but often neglect to insure their shareholders and key people. Death or critical illness of a business owner or key person will have a serious financial effect on the business and in some cases could see the business close entirely.
I advise companies and partnerships on setting up the right insurance to protect its owners and key people, whilst establishing a business will.
There are 4 ways I can protect the people within a business:
01
Shareholder & Partnership Protection
Shareholder Protection (or Owner Insurance) helps business owners keep control of a business if another owner dies or suffers a critical illness.
Typically, where a business owner dies and no plan is in place, the deceased owner’s estate will inherit their shares and the remaining owners of the business may have no means to buy the shares back. To resolve this issue and provide a beneficial outcome for all parties, I can establish insurance that enables the business to buy back the shares and the estate to receive a fair value for the shares. This insurance, combined with an option agreement (a type of business will), allows this process to be resolved without any of these issues.
Personal Life Cover Paid by The Business– (Relevant Life)
I can also help Ltd companies put cost and tax effective personal life insurance in place for all employees, by setting up a personal death in service plan and paying the insurance premiums.
The main benefits of using this type of life cover are as follows:
- monthly premiums count as a genuine tax-deductible business expense;
- it’s cheaper than paying for personal life cover using taxed income;
- the lump sum pay-out on death is not subject to income or inheritance tax; and
- the plan is written under trust to ensure the pay-out goes to the employees chosen beneficiaries.
02
02
Personal Life Cover Paid by The Business– (Relevant Life)
I can also help Ltd companies put cost and tax effective personal life insurance in place for all employees, by setting up a personal death in service plan and paying the insurance premiums.
The main benefits of using this type of life cover are as follows:
- monthly premiums count as a genuine tax-deductible business expense;
- it’s cheaper than paying for personal life cover using taxed income;
- the lump sum pay-out on death is not subject to income or inheritance tax; and
- the plan is written under trust to ensure the pay-out goes to the employees chosen beneficiaries.
03
Key Person Cover
A key person is someone who has a direct impact on a business’ profits. This could be a business owner, director, salesperson or any employee with specialist skills or expertise. The business can set up insurance to cover the impact of death or critical illness of a key person. This would cover future sales and/or value of ideas generated by this person, plus the cost of recruiting and retraining someone to replace them. I can help you to calculate the true cost of losing a key person and insure them.
Business Loan Protection
Loan Protection helps your business pay off any outstanding overdraft, loan or commercial mortgage following the death of a key person or their diagnosis of a critical illness. Some banks and finance companies may even insist on having this insurance in place, as a stipulation of a loan.
04
04
Business Loan Protection
Loan Protection helps your business pay off any outstanding overdraft, loan or commercial mortgage following the death of a key person or their diagnosis of a critical illness. Some banks and finance companies may even insist on having this insurance in place, as a stipulation of a loan.
Let's Talk Business Protection
To discuss either setting up a new business protection insurance, reviewing existing cover, please contact me via
Mobile: 07976507785
Email: ben@harroldfs.co.uk