I often find that business protection insurance is never the easiest policy to talk to a client about, especially when you open the conversation with; “What happens to this lot if you die?”
My opening pitch might need a little work but, according to a recent survey carried out by Legal & General, I’m casting my net out in the right area’s.
“57% of business owners do not cover themselves or their top income generators with a life or key man insurance policy.”
Business protection insurance helps protect your business from the financial losses incurred if a key person or owner of a business should die or be diagnosed with a terminal or critical illness.
Ask yourself these questions:
- Does my business rely heavily on one or a few key individuals?
- Could my business survive without those key individuals?
- What could go wrong if a director/partner were to die or be diagnosed with a critical illness??
“Many business owners agree that the loss of a key person can have dire consequences for their business”
There are many different types of business protection insurance policies available on the market today, the main three are as follows:
- Key Person Protection (Profit Protection) – This helps safeguard a business against the financial effects of death, terminal illness and critical illness of a key person. The policy proceeds are paid directly to the business to be used to help replace the key person and help cover the loss of profits that may occur.
- Business Loan Protection – The policy proceeds are used to help pay off any outstanding loans your business may have should the guarantor die or be diagnosed with a terminal or critical illness. These will include bank loans or director loan accounts which need to be repaid on death.
- Partners/directors/Limited Liability Partnership Share Protection – The policy proceeds are used to help buy the share of the business if a business owner is diagnosed with a critical illness or dies.
Running a business always involves an element of uncertainty. Premises can be rebuilt, contents and material assets can be replaced, but the recovery of a person is not nearly as certain. This all makes it especially important that you consider having the relevant protection insurance policies in place to help ensure that your business can survive a loss of an individual, including yourself.
For a free consultation with a business protection specialist, please call me on 01905 27775 or drop me an email [email protected] with a date and time that suits you.
