Business protection can be extremely important to help a company continue operating should a key person in the organisation become ill or die.
This could be a shareholder, owner, director or anyone else who could damage the businesses profits should they be affected by illness.
No organisation can continue to operate without certain key members, although with the right protection the impact could be minimised.
What Business Protection Covers
Business protection can help safeguard an organisation against a number of scenarios including:
- Income Protection: The salary of the key person who is sick will be covered while they recover from a critical illness
- Loss of Profits: If the company losses money due the absence of a key person it will be covered by the business protection insurance
- Share Purchase: Should a shareholder die or become critically ill the cost of purchasing their shares will be covered
- Shareholder Protection: Should a shareholder die or be diagnosed with a critical illness this will ensure the remaining shareholders will retain control of the company
- Life Cover: Should an employee die a tax free, lump sum payment will be made to their family
- Business Loan Protection: Should a key person die or be diagnosed with a critical illness the cover will pay a company’s outstanding overdraft, loan or commercial mortgage.
Why Business Protection is Essential
While companies will always look to plan for the future, such as, how it will expand, somethings will always remain unforeseen.
Illness and death can happen to anyone, at any time and the effects it can have on a company may be devastating.
Without business protection an organisation could be vulnerable to losing profits, clients and even stopped from operating altogether.
Having the right level of protection offers a company financial security against the worst case scenario and could even help their next of kin financially.
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