Business Protection

Shareholder Protection Agreements

These provide protection in life and in death, ensuring remaining shareholders and partners can continue to run your company in the event of the death or serious illness of another. For example in the event that a share of the company passes unfavourably into the hands of the shareholder’s beneficiary, funds will be available to recompense the family of the deceased or ill shareholder/partner for their share of the business. Often set up as a specialist business trust, they have the additional potential for tax savings.

Key Person Insurance

Most companies have one or more key employees – people whose knowledge and skill contribute significantly to the ongoing success of the business. In the event of their death or incapacity to work, replacing these skills can be a lengthy process and the negative impact on the business can be immense. Key person protection insures against the financial losses which death or long-term incapacity create.

Liability Protection: Loans & Borrowings

Liability protection ensures that, in the event of the death or serious illness of a key person, the company’s outstanding borrowings are cleared. Lenders can be nervous and unsympathetic when a key person is absent: for example, directors’ loans are normally instantly recalled on death. This causes additional strain, or worse, at a time when the continuing success of the business is already compromised. A lender will often make business load protection a condition of the loan; we can arrange this for you very cost effectively.

Critical Illness Cover

When a director or key employee becomes critically ill, the business is likely to continue to pay their salary and benefits while they are absent from the business – which of course can be a prolonged period. Additionally, the business may need to fund a locum to carry out some of their duties in the interim. Critical illness cover will alleviate the financial difficulties of this situation.

The policy may not cover all definitions of a critical illness. For definitions of illnesses covered please refer to the Key Features and Policy Documents.

Relevant Life Plan

Many business owners are unaware of these tax-efficient plans, which provide death-in-service benefits to the families of one or several key employees. They are particularly useful for high-earning individuals or where there are too few employees to set up a group scheme.

The plan will have no cash in value at any time, and will cease at the end of the term. If premiums are not maintained, then cover will lapse.