Helping you maintain as much control as possible.
Business protection is insurance aimed at helping you maintain control of your business by providing financial support in the event of the loss of a leading company person due to death or serious illness.
This may be a director, key member of staff, partner or shareholder and the resulting sum will help with the continuity of your business and reduce the chance of forced decisions and unwelcome outside involvement – for example from inheriting family members or banks and other creditors.
So, it can help purchase the affected person’s share of the business from their dependants or estate. It could help provide funds as a temporary buffer against the earnings and recruitments costs resulting from the loss of a key member of staff. Or simply be tied to repayment of a loan.
Clearly there is some overlap with other areas of specific advice such as employee benefits and director’s pensions.