Business Protection

What is Business Protection

Business protection is a way of protecting your business should a key person, partner or director die or contract a critical illness. It can help ensure that your business can continue trading in these circumstances.

There are four main areas of business protection (NOTE only 3 below on docs)

Shareholder and Partner Protection

On the death or critical illness of a shareholder the other shareholders will receive a cash lump sum to buy their shares. This ensures minimal disruption to the company and the critically ill person or the family of the deceased shareholder will receive a cash amount equivalent to the value of their shares.

Key Person Protection

Key person insurance is loss of profits insurance that provides a business with the proceeds from an insurance policy so that it can continue trading if a key person dies or becomes critically ill. The business can decide how to use the proceeds which could include employing a temporary or permanent replacement.

Sole Trader

A sole trader is a person who trades on their own without the use of a company structure or partners. They are entirely liable for the debts of the business. Any protection they take out will be on a personal protection basis. The sole trader needs to think about what will happen if they die or become critically ill.

What should I do for my business?

Business protection needs to take into account many factors, both personal and business, this is where we can help you.

Please call Jan on 01706 830678 for advice, or use our enquiry form.