Business Assurance

Most Businesses understand the need to manage the risks they face every day. They insure their premises, equipment and stock against fire, flood and theft. They insure their staff and customers with Liability Insurance and they insure their vehicles.

What about the most important assets? - PEOPLE

The fact is that many small and medium businesses rely on certain key people. It could be the sales manager who has important contacts and relationships with customers; it could be the designer who is responsible for product development; it could be one of the owners or directors of the business.

Without these people the business could suffer serious financial loss or even have to stop trading altogether. Business protection is designed to protect businesses against the effects of losing key people through Death, Critical Illness or temporary disability.

What problems could your business face?

loss of important contacts
loss of knowledge of processes and systems
loss of goodwill
loss of confidence from suppliers and customers
having to repay a loan the person had made to the business
difficulties in raising new finance – loss of confidence from bank
loss of profits
difficulties in meeting loan payments
the cost of recruitment and training

The fewer key people the higher the risk to the business

It won’t happen to me

It’s often easy to believe that the unthinkable couldn’t happen to you. But what if you were to die or suffer a Critical Illness?

Would your business continue to provide for your family?

Would your family be able to sell your share of the business to someone else or would they have to become a shareholder/director and become involved in running the business?  Is this something they could do or would want to do?

Would the surviving shareholders in the business want family members to become involved in running the business or would you prefer to have the funds available to buy out the deceased shareholders family?  Could the business afford to do that without having cover in place to facilitate that purchase? 

Taking out insurance to protect your business may not be exciting, like launching a new product or buying new premises but it can make sure your business continues if the worst were to happen

Let the taxman help pay for your life assurance

Under current legislation, if you are a company director and you have Life Assurance in place to protect your family, you could be paying more tax than you need to. 

With a Relevant Life Plan:- 

• your company pays the premiums
• it's not normally taxed as a benefit in kind
• will not form part of annual or lifetime pension allowance
• may be treated as an allowable expense for the employer
• benefits generally paid free of inheritance tax provided they are paid through a discretionary trust

If you would like to find out more about protecting yourself and your business, we will be happy to arrange a meeting at your  business premises if that is more convenient for you.