Also known as ‘key man insurance’, this can compensate a business for financial losses arising from the death, or extended incapacity, of a specified employee or director.
Business Protection
Business protection is all about insuring for the unexpected. It's a way of protecting your business if something goes wrong.
This can provide a business partnership with the funds to ‘buy out’ or compensate the deceased’s dependants, should a business partner die.
A Relevant Life Plan is a death-in-service benefit taken out by a company on behalf of an employee.
In the interests of financial security, business stability and continuity, it is essential to provide a safety net following the loss of a shareholder.
You probably have a strong idea of the short-term focus and needs of the company. But what about the longer term?
It is important to not lose sight of the ongoing threats to your business – threats that could have an impact as severe as any market downturn.
Protecting your most important assets
If a director, co-owner or key individual within your business were to die, or become critically ill, it could have a serious impact on your company’s ability to trade. For instance:
- How would the loss of their expertise and experience impact the business?
- If they are a shareholder, what would happen to their shares? Could the business afford to buy them back?
- How would your debtors and creditors react? Would loans be called in?
You probably already protect your company’s material assets, like premises, vehicles and equipment. Surely it makes sense to also protect the company’s most important assets – its people.
How we can help
We work with businesses like yours, offering advice on how best to protect it from the financial impact of unforeseen events.