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12th July 2019

Explaining Business Protection

Business Protection

Business protection is often overlooked but is key to protecting your business from financial losses caused by unavoidable change. As a rule, we believe that we are pretty invincible. This tends to extend to our businesses too. However, statistics show that we are NOT invincible. Have you ever taken time to think about the implications for your business should you (or a key person) become critically ill or die? Here are some of the options available to you as a business owner.

Key Person Protection

This policy protects a business against the financial effects of death, terminal or critical illness of a key person. The policy proceeds are paid directly to the business.  They can be used to replace both the key person and any loss of profit that might occur. This could help to ensure your business can continue trading through this challenging time.

Business Loan Protection

Policy proceeds are used to help pay off any outstanding loans your business might have should a guarantor become critically ill or die. If there is no strategy in place, outstanding debt could be called in. This could cripple your company and at the very least damage it’s ability to trade.


Partners’/Directors/Limited Liability Share Protection

is when policy proceeds are used to help buy the share of the business if (one of) the owners is diagnosed as terminally or critically ill.

There is also an option to take out a Relevant Life Plan

This provides like to like  cover for an employee, which may include Directors, whilst they are employed. This plan offers some very special advantages, notably tax efficiency. Although the life cover is personal to you and your employees the policy counts as a business expense so is tax deductible – a cost effective way to offer life cover to your employees if your business is not eligible for a group life scheme.

All businesses – no matter how small – should be protected. Here at The Finance Roome we specialise in offering business protection – we don’t just do mortgages! Please do call us for an obligation-free chat about what is best for YOUR business. After all, life happens to us all.





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