There are a number of ways in which you can protect your business, its key people and its assets. If you are wondering how business protection works, our guide will walk you through some of the most popular options and also list the benefits of business protection for your business.
In short, business protection does exactly what it says and safeguards your business financially in the event that one of your key assets (your people) fall ill with a critical illness or pass away. These people could include directors, partners, stakeholders or any key employee whose loss will affect the business. Most businesses rely on a select few people and decision makers to run smoothly, but what happens if one of these people or you as the business owner fall ill or worse, die?
Business protection is a type of insurance which will protect your business should the worst happen. Here are just some of the benefits:
- Allows a business to continue to trade after the loss of a key person
- Protects against loss of profit
- Provides the time and funds to hire and train new employees
- Allows companies to reduce the impact of a key person loss and recover quickly
- Avoids disruption for customers, suppliers and lenders
What Types of Business Protection are Available?
Key Person Insurance
Key Person insurance relates to those employees who’s knowledge, effort and leadership is a catalyst in the overall success of the business and if this type of employee should be unable to work, fall ill or die, that the business could not run at the same level of performance.
Co -Director Insurance
Co-director Insurance offers assurance and stability to all directors of a business. If one of the director’s passes away, this insurance enables the remaining directors to acquire the shares of the deceased director from their next-of-kin. This provision grants all directors involved peace of mind and financial security through a challenging time.
Corporate Director Insurance
This type of insurance offers essential protection for a company in the event that one of the directors should die. A lump sum will be made available to the company, enabling them to purchase the shares of the deceased director from their next-of-kin. This ensures continuity for the business whilst providing financial support to the family of the deceased during this time.
This particular insurance policy serves as a protective measure for the financial stability of a business partnership. It provides compensation to the estate of a deceased partner and covers their share of the partnership.
Are you a business owner? Have you thought about taking out business protection to protect yourself, your partners and your business? Our impartial team are happy to help you get the right protection for you. Contact us here.