Business Protection Options
Key Person Cover
Businesses will, most likely, own various types of insurance due to legal requirements or to manage the risk of financial loss to the business.
However, many companies don’t cover the risk of losing a key employee. Key person cover can help insure against the financial losses that may arise if a ‘key’ employee dies, becomes terminally ill or suffers a critical illness.
Loan Protection
Many businesses take out loans to help start the company or to expand on their current operations.
If a business owner dies or suffers a terminal illness, lenders may have the right to demand that any outstanding loans are paid back. These could be difficult to pay off at short notice.
Business Loan Protection pays out a lump sum to repay business loans if a shareholder or a business partner dies or suffers a serious illness.
How is this different to Key Person Cover?
They both sound very similar, but there are differences between how the two are calculated.
The amount insured for loan protection should match the amount of the outstanding loan and the term of the policy should match the remaining term of the loan.
With Key Person Cover, the amount insured is calculated on loss of profits or replacement costs, so there could be differences.
Shareholder Protection Cover
If a business owner dies or suffers a terminal illness, their share of the business usually passes to their beneficiaries. To regain control of that share, surviving business owners may need to buy that individual’s part of the business. Many don’t have the money to do this, and it can be costly to borrow.
With Shareholder Protection, you will be paid a lump-sum in order to cover the cost of purchasing those shares.
Executive Income Protection
Designed for small and medium businesses to cover the cost of providing sick pay benefits to a key employee.
Executive Income Protection provides a monthly benefit to the business in the event that a named employee is unable to work due to illness or injury. This money can be used to cover the employee's ongoing sick pay, ensuring that they do not need to depend on their savings or state benefits.
This information is a summary only. You will receive a full policy document upon application. This policy will set out the terms, conditions and limitations of cover provided under the plan.