Complete peace of mind with financial protection for your business
It goes without saying that business owners will want to protect their premises and stock from perils such as a burglary or fire. However, an area that is often overlooked, and equally as important, is cover to protect key people and shareholders, or to protect loan payments due to the loss of a business owner.
For many businesses, their most valuable asset is their staff. Key person insurance, also known as key man, is an insurance owned by your business which is designed to protect your business against the financial impact of losing a key employee due to death or a serious or critical illness. A key person is defined as someone who contributes significantly to the running of the business, due to their knowledge or skills, such as managing directors, sales managers or technical specialists.
As it is classed as a tax-deductible business expense, RLP is a tax-efficient life insurance policy that enables an employer to provide their employees with a death in service benefit. It must be written in trust for the beneficiaries of the employee insured and benefits paid out are usually free from inheritance tax.
Losing a shareholder due to serious illness or death is a situation nobody wants to think about. However, planning ahead and having protection in place for your business (should the unthinkable happen) is extremely important and can save a lot of stress and worry for not only the remaining business owners, but also for the family of the insured. Shareholder protection pays your business a lump sum to enable you to purchase the critically ill (or deceased) shareholder’s interest in the business, allowing your business to keep running without interruption whilst retaining control.
The serious illness or death of a business owner can have a devastating impact on the ability of a business to repay outstanding liabilities such as loans or overdrafts. This impact can even mean a business has to close. Having business loan insurance in place means loans can be repaid and the business can continue to trade.
Please be advised that this service is on a referral basis only.