Business protection

The death or serious illness of a key employee can have a damaging effect on your business.

It can lead to loss of profits, difficulty maintaining loan repayments, and provides a distraction for business owners from the day to day running of the business.

There are four main types of business protection for business owners to consider:

Key person protection – to cover temporary loss of profits and the costs of finding and training replacements.

Shareholder / partner protection – to allow remaining shareholders / partners to retain control of the business on the death or serious illness of one of the business owners.

Loan protection – to repay all or some of a loan on the death or serious illness of a key employee. This could include loans from external parties or loans from the business owner themselves.

Relevant life – while not strictly for the benefit of the business, a relevant life policy is an alternative way for an employer to set up (and pay for) life cover for an employee in a tax efficient manner. Relevant life policies are set up on a single life basis, and may be suitable for small companies that may not normally be able to access this type of death in service cover by means of a group scheme.

We can work with you to identify whether any of these types of cover are required, quantify the amount of cover needed, and arrange for a suitable solution to be put in place.

Tax treatment varies according to individual circumstances and is subject to change.