You insure your business’s physical assets like your building, vehicles and stock, why not protect your most important ones – your people. Business protection insurance is an umbrella term for multiple insurance products designed to protect your business financially against the loss of one of your owners, key employees or shareholders, whether that’s due to long-term illness, disablement or death.
Types of business protection policies:
Key Person Protection
- Key person protection insures against the loss of a key employee whose death or illness may critically impact the operations or finances of the business.
- It works by providing a financial payment if a key person dies or becomes seriously ill, helps fund recruitment and training of a replacement, and helps sustain businesses that are continuing during the transition period.
- There are tax implications with this policy, premiums may be tax-deductible if certain conditions aren’t met but this can be discussed in further detail in one of our consultations.
Shareholder Protection
- This cover enables remaining shareholders to purchase shares of an ailing or deceased shareholder, ensuring the continuity of the business and preventing unwanted third-party interference.
- This policy pays for remaining shareholders’ share purchases, protects against loss of control to outsiders, and streamlines the transfer of ownership. It does not cover general business loss or protect against poor business performance.
Business Loan Protection
This policy insures outstanding loans or borrowings if a guarantor on a loan or significant individual passes away or is diagnosed with a serious illness.
It’ll pay business loans on death or serious illness of a guarantor and preserves business owners of personal assets mortgaged as security. It does not cover loans availed after the policy takes effect and doesn’t insure against default on loans due to poor business performance.
What next?
There are plenty more business protection insurance that we offer. It’s important to get the right balance and the correct protection for your business, which is why we’re on hand to help guide you in the right direction.
For a consultation about how we can help tailor insurance that aligns with your company’s values and meets the unique needs of your business, you can get in touch by email on employeebenefits@jensten.co.uk or by phone 0333 400 4873
