If you are running a successful business you will have undoubtedly invested a significant amount of time and financial resource in building the business and the team of people within it that help make it a success.
Whilst engaged in busy day to day business activities it could be easy to lose sight of how the business may suffer financially were a key employee or major shareholder die or become critically ill.
Consider the function key employees have within your business and what impact may be placed on the business if that key employee was no longer available.
Think of the time needed to interview and train a suitable replacement. Think of the potential loss of sales, reduced production and any subsequent impact on your customer base.
Keyman Insurance is designed to compensate a business in the eventuality of a key employee being unable to fulfil their duties through becoming critically ill or losing their life. It aims to pay out a lump which can be used to cover short term losses and the cost or finding and training a replacement.
In the event of a shareholder losing their life or becoming critically ill, Shareholder protection is all about ensuring sufficient finance is available to the other shareholders to purchase that person’s share of the business.
A shareholder who becomes critically ill may need to raise money to help cope with the financial pressures of being ill and as such may wish to sell their share of the business. Upon loss of life and without adequate provision in place, those shares could be inherited by the person’s estate, someone who may be totally un-associated with the business.
Without suitable Shareholder Agreements and Protection in place, a business is at risk of suffering financial loss and / or the risk of unsuitable people becoming legal owners of the business.
Business Loan Protection
Just as you would with any personal loan or mortgage, Business Loan Protection is simply about insuring business debt.
Usually it will be the principal owners of the business who will have accepted liability for the debt and if left unprotected the business assets and potentially personal assets of the company directors could be at risk should the lender seek to recover what is owed.
Arranging business loan protection ensures that upon death or critical illness, the loan can be repaid.
All businesses need to arrange some form of insurance for their business needs and some are required by law.
Commercial insurance covers things like Professional Indemnity Insurance, Public Liability Insurance and Employers Liability Insurance. Whatever your Commercial Insurance needs, our consultants may be able to assist you.