Why Do I Need Business Protection?

When you run a business, it’s easy to focus on growth,  finding new clients, hiring staff, or investing in the next big opportunity. But what many business owners overlook is what would happen if the unexpected occurred.

If a key person, shareholder, or business partner were suddenly unable to work or passed away, how would your business cope? Could you keep things running smoothly? Could you buy out their share? Would the company still be financially stable?

That’s where business protection comes in.

Business protection ensures your business can survive financially if something serious happens to one of its key people. Below, we’ll explain the main types and how they can safeguard your business’s future.

Relevant Life Cover

A Relevant Life Policy is a tax-efficient way to provide life cover for company directors or employees.

It’s similar to a personal life insurance policy, but it’s paid for by the business rather than the individual, making it a deductible business expense and not a benefit-in-kind for the employee.

If the insured person passes away (or is diagnosed with a terminal illness), the payout goes to their family via a trust.

Ideal for: business owners who want to protect their loved ones while keeping things tax-efficient.

Key Person Insurance

Every business has people it simply couldn’t run without; whether that’s the founder, a top salesperson, or someone with specialist technical knowledge.

Key Person Insurance protects the business itself, not the individual’s family. If a key person dies or becomes critically ill, the policy pays out to the company, helping it cover lost revenue, recruitment costs, or loan repayments.

Ideal for: businesses that rely heavily on one or two individuals for income or expertise.

Shareholder and Partnership Protection

If one of your shareholders or partners dies, their share of the business could automatically pass to their next of kin, who might not want to be involved in running it.

Shareholder or Partnership Protection ensures the remaining owners have the funds to buy back those shares, maintaining control of the business and ensuring a fair outcome for everyone involved.

Ideal for: limited companies or partnerships with multiple owners.

Protecting What You’ve Built

You’ve worked hard to build your business; protecting it is just as important as growing it. Business protection provides peace of mind, knowing that your company, employees, and family are financially secure, no matter what happens.

If you’re unsure what kind of cover your business needs, we can help.

Get in touch to talk through your options and make sure your business is fully protected for the future.