Business Protection

Business Protection

Business protection is all about insuring for the unexpected. It’s a way of protecting your business if something goes wrong. Here are the main types of policy.

  • Partnership and Shareholder Protection

    Whether a business is a partnership or a limited company, one of the great risks is that one of the partners or shareholders may die or suffer a specified critical illness, with their share of the business passing to their beneficiaries. In the interests of financial security, business stability, and continuity it is important to have a plan. This could be a pre-arranged scheme to ensure the surviving partners or shareholders have enough funds to buy out the partner’s or shareholder’s interest in the business.

  • Key Person Insurance

    Key person insurance is an important form of business insurance. Although there is no legal definition for ‘key person insurance’, it can be described as an insurance policy taken out by a business to protect that business for potential financial losses that could arise from the death or extended incapacity of an important member of the business.

  • Death In Service

    This is a form of benefit that’s provided by an employer. If your employer offers this benefit and you’re eligible for it, it means the policy will pay out a tax-free lump sum of cash if you die whilst you are employed by the company in question. Most policies need a minimum of 6 members.

  • Relevant Life Policy

    Relevant Life Cover is a tax-efficient life insurance policy, allowing small companies (usually with under 6 employees) to offer a death-in-service benefit to its employees (including salaried directors). It’s set up by the company and pays out a tax-free, lump sum on the death (or diagnosis of a terminal illness) of the person insured.

  • Finance Protection

    As with a residential mortgage it is advisable to have some form of protection in place if the business is using loans or an overdraft facility, in the event that a business owner or key employee die or be taken seriously ill. This could be a life assurance, critical illness or income protection policy.

The Financial Conduct Authority does not regulate taxation advice.

Business Protection Planning

If you would like advice on business protection or a review of your current plan then please contact Forward Plan on: 01303 76 76 50

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