Business Protection Life Insurance

Business protection insurance or Business assurance helps protect a company financially when its owners or employees are affected by illness or death. It can help support owners in making sure their business survives in challenging times.

Business protection insurance can be used to cover business loans or protect against the loss of a key person, partner, member or shareholding director if they are diagnosed with a serious illness, terminal illness or they die.

You already understand the need to protect your business premises and equipment. However, you may have forgotten about your most valuable asset – your staff. The death or serious illness of one of your key employees or co-owner can seriously affect your business, financially as well as the loss of key knowledge. Business protection can help ensure the long-term financial health of your business during difficult circumstances.

People are critical in small businesses. If you’re an owner and a key employee dies or falls ill, it can have a massive impact on the business. You’re likely to be concerned about making sure the business will continue to run until a replacement can be found, or until the colleague returns to work. Cash flow could become a major worry.

Putting business protection insurance in place gives you the security of knowing that your business can survive in seriously challenging circumstances.

Your staff are your most valuable asset. That’s why the death or illness of a key employee or owner can have a major impact.

You may already be insured against major catastrophes, accidents and other events. However, if you don’t insure your employees, you may still be putting yourself (and your business) at risk.

When your strength is in your staff, you should consider covering them.

By taking out business protection cover, you can help your business continue to survive during difficult times.

The death or serious illness of a key employee or a co-owner could lead to:
• A fall in sales
• Delays completing existing contracts (and possible penalties)
• A lack of confidence in the business from a bank, suppliers, customers and other employees
• Loans (that may be called in sooner than expected)
• Suppliers may demand payment upfront
• Customers may choose to go elsewhere
• An increase in recruitment costs, head hunting fees, or paying to train a replacement
• Cash flow issues (in extreme circumstances, such as needing to buy out a co-owner, the business could even end up in someone else’s hands)
• A delay on product launches

With business protection insurance, you can keep control and protect your business from these consequences.

We offer four main solutions, which are all available as either Term Assurance or Serious Illness with Term Assurance policies:

• Keyperson Insurance – Key person cover protects businesses if an employee who significantly contributes to their success becomes terminally or critically ill, or dies.
• Partnership Insurance – Partnership protection can provide partners with the cash flow necessary to buy back the ownership stake from a partner or member who has died or been taken ill.
• Co-Director Insurance – Provides a lump sum payment on the death of a director and enables the remaining directors to purchase the deceased directors shares in the business from the family and retain control of the company.
• Corporate Co-Director Insurance – Share purchase protection allows for a planned succession of a shareholder or partner’s business stake should they fall ill or die, with options such as required buybacks.

We offer solutions to businesses of all sizes and types – including limited companies, sole traders, and partnerships.

At Lifebroker, we understand that different businesses need different types of protection – particularly for partnerships and shareholders. Because of this, we make it possible to take out a ‘life of another’ plan or an ‘own life’ plan, which is then written into a business trust.

So, whatever type of business you have, we offer the protection you need.

We also have access to dedicated specimen business trust documents together with specimen option agreements that can be used in conjunction with these particular products. We cannot however advise on whether putting a plan into a trust would be suitable for your particular circumstances and would recommend that you take professional legal advice on the suitability of these specimen documents.