Business protection insurance protects a company financially when its owners or employees are affected by illness or death, making sure the business survives in challenging times.
Business protection insurance is a range of insurance policies that have been designed specifically to protect businesses if and when certain people such as business owners or key employees die, are diagnosed with a critical illness or become unable to work due to disablement.
The insurance can be tailored to protect sole traders, shareholders, partnerships and employees depending on the needs of the business. A policy can insure more than one life and usually when a claim is made, the lump sum paid out goes to the business or remaining owners of that business.
There are four types of business protection insurance available:
Partnership / Shareholder Protection
This type of protection allows the remaining partners/shareholding directors to remain in control of the business following the death of a business owner.
Relevant Life Insurance
Relevant life cover is a tax-efficient life insurance policy, allowing companies to offer a death-in-service benefit to its employees. It’s set up by the company and pays out a tax-free, lump sum on the death (or diagnosis of a terminal illness) of the person insured.
Key Person Insurance
Should a key person in a business die, there can be a devastating financial effect on the company. With key person insurance, you can help protect your business against the death, terminal or critical illness of a key person.
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