Business Protection
Protect your business
from the unexpected.
Business protection insurance covers your company against the financial impact of losing a key employee, shareholder, or business owner through death or critical illness. Without it, the sudden loss of a key person can threaten even a well-run business.
There are several types of cover — key person insurance, shareholder protection, and business loan protection. Our advisers will identify the right combination for your business structure.
What is business protection insurance?
Business protection insurance is an umbrella term for policies that protect a company against the financial impact of losing a key person, business owner, or shareholder through death or serious illness. Whilst most businesses insure their premises, equipment, and public liability, the unexpected loss of a key individual can cause financial harm that no general business insurance policy will cover.
Key person insurance, shareholder protection, and business loan cover
The three main types of business protection serve distinct purposes. Key person insurance is taken out by the company on an individual whose skills, relationships, or revenue generation are critical to the business. Shareholder protection ensures that if a shareholder dies, the surviving partners have the funds to purchase their share — preventing unwanted ownership by the deceased's estate. Business loan protectioncovers outstanding commercial loans and director's guarantees, protecting personal assets if a business is wound up unexpectedly.
The tax efficiency of relevant life plans
For directors and employees, a relevant life plan offers a highly tax-efficient route to provide death-in-service benefits. Premiums are typically treated as a business expense for corporation tax purposes, the benefit is paid into a discretionary trust (outside the estate for inheritance tax), and neither the employer nor employee incurs a P11D benefit-in-kind charge. A regulated adviser will ensure the correct structure is in place.
Who needs it
You should consider business protection if…
- ✓Your business relies heavily on one or two key individuals
- ✓You have business partners or shareholders
- ✓You have a business loan or commercial mortgage
- ✓You want to fund a buyout if a co-owner dies or becomes critically ill
- ✓You are a director whose death would trigger loan guarantees
- ✓You want to protect your company's credit lines and supplier relationships
Key benefits
Why it matters
Key person insurance
Pays a lump sum to the business if a key employee or director dies or is critically ill, covering recruitment costs, lost revenue, and loan obligations.
Shareholder protection
Funds the surviving shareholders to buy out the deceased or critically ill owner's share — preventing unwanted third-party ownership.
Business loan protection
Ensures outstanding business loans can be repaid, protecting directors' personal guarantees and the company's assets.
Relevant life plans
A tax-efficient way for companies to provide life cover for directors and employees, with premiums treated as a business expense.
FAQ
Common questions about business protection
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