Business
Protection
Insurance
While no one can anticipate the future,
Business Protection Insurance is there to support
your firm in the terrible event that a key
employee, company director, or owner falls ill or
passes away unexpectedly.
Business Protection Insurance is there to support
your firm in the terrible event that a key
employee, company director, or owner falls ill or
passes away unexpectedly.
Introducing Business Protection Insurance
Running a business can be a hugely rewarding but challenging experience, and unforeseen events can cause disruption, or even put the stability of a business at risk.
While no one can anticipate the future, Business Protection Insurance is there to support your firm in the terrible event that a key employee, company director, or owner falls ill or passes away unexpectedly.
What is Business Protection Insurance
A business can thrive when there is certainty and stability, and with Business Protection Insurance, you may set safeguards in place to make sure that your firm is not jeopardised in the case of someone developing a terminal disease, a serious sickness, or passing away.
Who Business Protection Insurance Can Help
We offer solutions to businesses of all sizes and types – including limited companies, sole traders, partnerships, and limited liability partnerships (LLPs).
At Life Expert, we understand that different businesses need different types of protection – particularly for partnerships and shareholders. Because of this, we make it possible to take out a ‘life of another’ plan or an ‘own life’ plan, which is then written into a business trust.
So, whatever type of business you have, we offer the protection you need.
Why is Business Protection Important?
Every company wants its essential personnel to be prepared and available for work. But there are plenty of unexpected events that might stop “business as usual,” from fatal accidents to debilitating illnesses.
Read on to learn more about the different categories of business protection for the policies we provide.
Why Take Out Business Protection Insurance
Plan For The Unexpected
No one wants to think about death or critical illness but if this were to happen to you or key people, your business may not be able to survive the financial fallout.
Research from insurer Legal & General found that 52% of the UK’s small businesses believe they would cease trading in less than a year should a key employee die or be diagnosed with a critical illness & be unable to work.
Stay In Control
You and your business partners have spent a great deal of time and effort building up your business.
Having the funds available at a time of crisis can ensure you remain in the driving seat with funds used to pay off debts/creditors, recruit a replacement or ensure shares can be purchased from an outgoing shareholder or their family.
Give Your Business Partners & Family Peace of Mind
Should the worst happen, you will want to guarantee your family receives the value for your share in the business that you have worked so hard to secure and that this is paid promptly.
At the same time, you will want to ensure that honouring this does not put the business at risk.
Key Person Insurance
Talented, devoted, and capable individuals are at the core of every successful organisation, but none of us can predict what the future will hold. Research from Legal & General found that 52% of small businesses think they would have to cease operations in less than a year following the passing away or serious illness of a key individual.
A key person’s death, terminal sickness (if the life expectancy is less than 12 months), or a specific critical illness (if chosen for an additional cost at the commencement) can have a significant financial impact on a company. Our Key Person Protection helps protect against this risk.
To help replace the key employee and help cover any profit loss, the business receives a direct payment from the policy profits. The insurance proceeds can enable your company to keep operating.
What is Key Person Insurance
The terms “key man insurance” and “key person insurance” refer to insurance plans that shield companies from losing important employees, including men and women, who are unable to work due to serious or terminal illnesses or who pass away during the term of a policy.
Simply put, “key man insurance” refers to a business’s insurance against the financial loss it would sustain in such a scenario. Giving your stakeholders the assurance that your company can continue to run smoothly even if a key employee passes away or develops a specific serious illness is the goal.
Shareholder Protection Insurance
Could you afford to buy the stock of a deceased shareholder in your private limited company, member of your limited liability partnership (LLP), or partnership partner?
If not, there can be serious repercussions for the future of your company. In this case, shareholder protection can assist you in preserving your company’s ownership.
What is Share Protection Insurance
A share protection arrangement enables the surviving owners to purchase the deceased owner’s share of the business from the deceased owner’s estate and ensures that the deceased owner’s dependants have a willing buyer and cash instead of a share of the business.
How Does Share Protection Work
Share protection can offer a lump amount to the surviving business owners in the event of a business owner’s death, diagnosis of a terminal illness (life expectancy less than 12 months), or a specific critical illness*.
This indicates that the lump payment could be used to assist in purchasing the dead partner’s, director’s, or member’s interest in the company if a legitimate claim is made within the term of the policy.
*If Critical Illness Cover is first selected at an additional expense.
Relevant Life Insurance
In businesses that are too small to consider setting up comprehensive group protection programmes, relevant life insurance is a cost-effective solution to set up individual death-in-service benefits for personnel.
The company insures the plan on the life of the employee, although there are cases of employees at the director level insuring themselves. You can customise the cover to meet your own needs.
What is Relevant Life Insurance
In businesses that are too small to consider setting up comprehensive group protection programmes, relevant life insurance is a cost-effective solution to set up individual death-in-service benefits for personnel.
The company insures the plan on the life of the employee, although there are cases of employees at the director level insuring themselves. You can customise the cover to meet your own needs.
Are Relevant-Life Plans Cost Effective
Relevant Life Plans are specially created to meet your demands. When arranging an equivalent personal life insurance policy, the cost to the employer may be significantly less than the cost to the individual.
HMRC often views this kind of plan as an allowable business expense, and all premiums and benefits paid are fully eligible for Income Tax, National Insurance, and Corporate Tax reduction.
This indicates that if the employee is a higher rate taxpayer, premiums could be lowered by up to 49% in comparison to a standard life insurance coverage. This amount might reach 40% for a base rate taxpayer.
Business Loan Protection
Many businesses borrow money to fund expansion projects or cover regular expenses, but could yours continue to operate if one of your main employees were to sadly pass away or be given a serious or terminal illness?
If one of your company’s main employees were to leave, Business Loan Protection might be able to save it financially.
Every employee who directly affects the company’s profits is considered a key employee. They could be a company director, owner, or any employee with specialised knowledge.
What is Business Loan Protection
Business Loan Protection with Life Expert can help your business pay an outstanding overdraft, loan or commercial mortgage, should a key employee die or be diagnosed with a terminal illness (with a life expectancy of less than 12 months) during the length of the policy. It could also pay out if they’re diagnosed with a specified critical illness (if Critical Illness Cover is chosen at outset for an extra cost) during the length of the policy.
When you take out Business Loan Protection, your cover should reflect the amount your business owes in borrowed money. This can ensure that if you claim for a pay-out, you have sufficient cover in place to repay your business loans.