Business protection

Which of the following would damage your business the most?

 

  • Cansquared_independent_financial_advice_Manager3The photocopier breaks down
  • One of the directors becomes critically ill
  • The courier lets you down
  • A window is broken by vandals
  • A shareholding director dies

 

What is business protection?

Business protection could help your business to continue trading should a key individual or business owner die or become terminally or critically ill. Proceeds from an insurance policy could help ensure that key individuals are replaced, corporate debt is repaid and shares from the deceased partner’s/director’s estate are purchased by the right people.

Key Person Protection

If your business depends heavily on the skills, knowledge and judgement of a particular individual, what would the impact be if this person was no longer around? Would there be a loss of profit, an interruption to cash flow, or an inability to make loan repayments? In some instances the impact can be so great that the business is unable to continue. Key Person protection allows you to put cover in place that would ensure the funds become available if such an unfortunate event occurs.

Shareholder/Partnership Protection

Your share in your business may well be one of the most valuable assets you own. So what would happen to that share if you died or became critically? Or what would you want to happen to it? It’s likely that the share will pass to your next of kin, however, would they want that share or would they prefer its value instead? Equally, what would any surviving partners or shareholders want to happen to your share of the business? Shareholder or Partnership Protection can provide the funds to enable everyone’s wishes to be fulfilled. A legal agreement ensures the funds are used to purchase the share of the business as appropriate and, as a result, that the surviving business owners remain in control of their business.

Business Loan Protection

If you have corporate debt, what would the lender say if a key individual is no longer around? The loan could be called-in early, so how would it be repaid in this event? Business Loan Protection can ensure that any loans are repaid in the event of the death or critical illness of a business owner.

How can we help?

As a business specialist I have spent many years working directly with businesses and helping them understand the risks they face. I will conduct a business health check and help identify whether business protection could benefit your business, be it a limited company, LLP or partnership.

If you would like to know more, then please contact us to arrange an initial conversation.