What is Business Protection?

Business Protection deals with the "what if " factor for businesses, esp. the smaller tight knit organisation where every senior player is important.

The main types of insurance are as follows:-

Keyman - Used to protect the business from the loss of a key person. Provides cash to the business to enable it to survive.

Partnership Assurance and Share Purchase - Protects the interests of the co-owners and those of the family of the deceased in the event of one of the owners dying.
 

Why is it important?

You insure your car and factory and office, but what about your key people. Loss of a key person can result in loss of part of your knowledge base, the damaging of your credit status, or connections with customers and suppliers.
It has been said that if 4 people aged 40 start a business together the odds against all of them getting to retirement age are less than even. It is more likely than not that one will die.

How does it work?

Keyman

Normally a Term policy which Simply provides funds to deal with the death of key person. Normally 2 or 3 times salary, but more if linked directly to risk, ( e.g. a bank overdraft, or he was the key business producer and therefore responsible for bulk of turnover ).
A Key Man may be anyone in the organisation, but most owners who are active will be Key people and should be insured to protect the business.

Partnership / Director Share Purchase

This protects the interests of co-owners and family members in the event of a death.
In brief each owner agrees how much his share is worth, and a combination of insurance policies and legal documents are put in place to ensure that should anything happen the co-owners buy out the family of the deceased for a fair value.
 

Support from Providers

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