Business Protection

The most important factor in your business is… YOU!

But as a business owner or company director what happens to the business if you:

  • get sick
  • get injured
  • die?

I guess most of us think that we can still run our business from our sickbed, but that’s not always the case. Some businesses require a hands-on approach at all times. And some illnesses are so severe that the business has to wait while you take time to recover. It is not just other people who get seriously ill. As a business owner there’s no sick pay!

So, who would:

  • run the business
  • maintain the relationships with clients
  • pay the loan (especially with a new business)
  • keep the business profitable?

And if you died suddenly then what happens to the business or your share of the business? Can your business partners afford to buy out your share and maintain control of the business? Will your spouse / children get a fair value for your share?

This is where business protection planning can put your business on a safer footing. Obviously, it’s not going to be as good as having you there, but at least it can provide the financial cover to keep the business afloat.

There are two ways of insuring your business. Firstly, your business can cover a key person (such as yourself or other key staff) through life insurance, critical illness cover and income protection. On payout, the business will get a cash injection to help with cashflow while it reorganises, recruits and pays off any loan.

Secondly, your business can take out ownership protection. This ensures that the business can stay in the hands of the remaining owners. In addition, the family of the deceased owner or departing critically ill owner can get fair value for their share of the business. Tax and trust planning are vital in this regard.**

All good businesses plan their marketing, their budgeting and their risk strategy. Is there any reason why business protection should not be included?

Call us on 0207 183 3703 to discuss any aspect of business protection or to arrange an appointment to help you find the best solution for protecting your business.

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**The Financial Conduct Authority does not regulate Tax advice or Trusts.