If something happened to you, a fellow director, or a key member of your team, would the business be able to carry on as usual? Business protection is about making sure the answer is yes — for the business, and for the people who depend on it.
Speak to an adviserMost business owners insure their premises, their equipment and their vehicles as a matter of course — but the people who make the business work are often the biggest single risk of all. If a director, partner or key employee died, or was seriously ill and unable to work, could the business keep trading, meet its obligations and support their family, without a financial shock? Business protection is designed to answer that question before it's ever tested.
Business protection can be relevant to almost any limited company or partnership, but it's especially worth a conversation if:
Can allow a business to provide individual life cover for a director or employee, without the cost and complexity of setting up a group scheme. Premiums are usually paid by the business, and the benefit is normally written in trust so it can be paid to the employee's family outside of their estate. Tax treatment depends on HMRC rules and individual circumstances and may change. Correct policy and trust arrangements are required, and separate tax or legal advice may be needed.
Can pay a benefit to the business if a key director or employee dies or meets a covered critical-illness definition, helping the business manage some of the financial impact of losing someone whose knowledge, relationships or role would be difficult and costly to replace. It may not cover every loss, and all claims are subject to the policy terms.
Can provide funds intended to help the remaining shareholders or partners purchase a deceased or critically ill shareholder's stake, usually alongside a cross-option agreement. The intended outcome depends on the policy, ownership structure, valuation and having the right legal agreements in place.
Pays a regular benefit to the company if a director is unable to work due to illness or injury, structured and funded through the business to help replace some of the financial impact of their absence.
An employee benefit that can pay a lump sum to an employee's family if they die while employed by the business, typically arranged as part of a wider staff benefits package. Terms, eligibility and the level of cover depend on the scheme and provider.
Can provide a replacement income for employees who are unable to work due to long-term illness or injury, helping support staff and reduce the financial pressure on the business. Cover, waiting periods and payment terms vary by scheme.
Business protection needs depend on how a company is structured, who owns it, who depends on which individuals, and what existing arrangements — such as shareholder agreements or partnership agreements — are already in place. We assess your business's circumstances, including its structure, key individuals and existing cover, before recommending a specific policy and structure. We provide personal recommendations on the basis of a fair and personal analysis of a sufficiently large number of policies available in the relevant market. This is advised business: we recommend cover suited to your business, not a list of options to choose between yourself.
Free and without obligation, to understand your business structure and what's already in place.
We look at ownership, key individuals, existing arrangements such as shareholder agreements, and what the business can afford.
A written, advised recommendation for the cover and structure that fits, explained in plain terms before anything is put in place.
Cover and circumstances change as a business grows — we're on hand to review it as needed.
As with personal protection, business protection policies have terms that affect when and how they pay out. Before proceeding, it's important to understand:
We'll go through the specific exclusions and conditions that apply to any policy and structure we recommend before you proceed.
We do not charge a fee for business protection advice. Providers may pay us commission for arranging cover, the amount of which we will confirm to you before you proceed.
Every business is different. Get in touch and we'll talk through what protection, if any, makes sense for your business and the people in it.
Contact usAre you an accountant, solicitor or other adviser with a client this might help? Visit our partner page to find out how referring a client works.