Protecting You and Your Business

Keeping your business on track

Few business owners have fully considered the effects on their business of losing a key employee, or fellow business owner, through illness or death.

Without appropriate contingencies in place, such occurrences can have serious and potentially disastrous consequences.

Careful planning and regular reviews can avoid considerable difficulties should the worst happen in the future.

Keeping your business on track
Key person insurance

Key person insurance

This insurance would provide a lump sum in the event of critical illness or death of a key revenue-generating employee.

Cash would come back to the business, replacing lost sales or income for a period.

The cover is designed to offset any business income that might be lost should a key person lose their life or health, perhaps until a replacement can be recruited.  It can also be set up to cover the expected costs of finding appropriate new talent.

Shareholder protection

Most business owners haven’t considered the effects of losing a fellow shareholder through illness or death.

This could mean the business losing a valuable revenue generator, but it can also create serious issues for the remaining owners.  They may end up having to work with the deceased owners’ beneficiaries, who may not have the skills, experience or interest to continue in the business.

In some cases, company assets may need to be sold to cover inheritance tax liabilities, or to provide for the deceased’s dependants.

Raising the finance to buy out the family might be impossible, and conflicts can easily arise.

Working together to establish appropriate insurances and legal agreements, an early stage, can avoid many of these potential headaches.

Shareholder protection

Cover will cease on insurance products if premium payments are not maintained.  The Financial Conduct Authority does not regulate some aspects of Cashflow, Trust, Tax and Estate Planning.