There are 3 main Types of Business Protection you may look at
This is financial protection for your business if a key individual dies or suffers a critical illness. It could be someone such as the sales manager whose contacts and relationships with customers ensure that sales stay on target, or it could be someone with a creative or technical skill vital to your business. Alternatively, it could simply be a member of your team who would be difficult to replace. Often, an individual's value to the business will be reflected in their remuneration package. This is usually a good indicator when trying to identify the key people within your business.
In the event of a shareholder's death, one of the most important challenges for your business is to ensure continuity. For partners in a business, cover is extremely important as partnerships may be dissolved automatically on death unless stated otherwise in the partnership agreement.
Shareholder/Partnership Protection insurance in conjunction with a suitable legal agreement ensures that the surviving shareholders / partners receive a cash lump sum which can then be used to buy the deceased shareholder / partner's share of ownership of the business. The business can then continue without the involvement of other parties such as the deceased's beneficiaries who may not have the necessary skills and experience to make a worthwhile contribution to the business.
If an overdraft, loan or commercial mortgage is unable to be repaid due to the loss of a key person, it can have huge implications for the business. As its name suggests, Business Loan Protection is a type of insurance designed to repay all or part of a business's debts upon death of the life insured. It is taken out to provide cover against death or a critical illness (where that option is chosen) that could adversely affect a business's ability to repay its borrowings.
This normally refers to insurance obtained for your buildings or property. If you operate your business from specific business premises you will need Business Property Insurance. This will normally cover your business with policies that protect your business buildings, your contents and public and owners liability. You can also cover your business equipment and tools, such as Laptops, and items that are important for your business.
General insurance is a sector of business regulated by the FSA and we will put you in touch with one of our Partners who will be able to help you. Call us to discuss for impartial and FREE advice or go to our Contact Us Page to find out how we can help.