Business Protection insurance is designed to protect your company against the unexpected death or critical illness of a director or key employee. Essentially, this type of cover will future-proof your organisation through a variety of policy types designed to protect your company, family and employees.
It is likely that you have already considered policies which are designed to protect your physical assets such as stock, equipment and premises. However, Business Protection will act as a safety net by offering breathing space, assistance with succession planning and assisting with overall continuity.
There are many benefits associated with Business Protection, with the most obvious being the financial safety net to ensure operations can continue and jobs are safeguarded. Although, with this type of cover it is also possible to ensure personal requirements, with cover types available to protect both the owners and the employees.
As an individual, it is possible to arrange both life and critical illness cover through your company, reducing the overall cost and tax liabilities. The premiums are often tax deductible and could result in potential savings of up to 40%.
Insured individuals can use their payment however they wish, although there are specific policies designed to provide a specific function. For example, directors may choose to clear debts or buy out a shareholder or partner, in the event of long-term serious illness, disablement or death. This also ensures that the beneficiary receives a fair payment for their inherited share.
‘Business Protection’ is simply a term used to describe the ways you can protect your company against the loss of key employees, owners, shareholders or partners, in the event of death, disablement or long-term serious illness. Many organisations are familiar with policies designed to protect material assets, however policies for the owners and key employees are often areas which are overlooked.
If you are reliant upon a single director or even a key employee, BP is something which you should seriously consider. The appropriate level of coverage could provide your organisation and its loyal team with the financial lifeline needed during a difficult transition period, whilst also offering a variety of tax benefits.
There are a variety of policy options which fall under the BP umbrella, which are suitable for sole traders, partnerships, LLPs, shareholders and senior key staff. No matter how large or small your company, coverage can be arranged to suit your specific requirements.
There are four types of insurance policies which fall under the Business Protection umbrella:
We understand that every organisation is different, so if you would like to arrange coverage but are not sure what type of cover you require, we’re here to help. Please answer a few questions and our partners at My Protection Guru are here to help and they will find you find the best protection for you and your business.