Why take out cover?  

What would you do for example if your top salesperson was off long term sick or passed away, or something happened to one of the directors? There are a number of protection policies designed for very specific circumstances, where you can ensure that your business is protected whatever happens in the future. 
As many of these policies can be put through the business, there may be additional benefits in taking out a company rather than individual cover. 

Key Person cover  

Think about how your business would function without your top performers if they were off work for a long time through illness. How would your business manage? 
Key person Insurance protects a business against the loss of profits if a key employee dies, becomes terminally ill or suffers a critical illness. The insurer pays out a lump sum to the business, providing essential funds to help it through a difficult period of reorganisation or replacement. A key person could be any individual who significantly contributes to a business with their skills, experience, knowledge or leadership. 

Shareholder Protection  

If you run a business with other partners, what would happen if they were no longer around? When somebody passes away, it is usually dependants who receive assets, which can include any shares in your business. 
Unless a shareholder protection plan is in place, the death of a business partner could result in decision making and control of a company going to the deceased's estate, and they may have very different ideas than you in terms of the future of the business you helped create. 
In order to prevent this, a shareholder protection policy allows the remaining partners to buy the insured partner’s or shareholder’s interest in the business should the worst happen and a shareholder dies or becomes terminally or critically ill. 

Business Loan Protection  

What would happen if somebody important in the business becomes ill or dies and a loan suddenly needs to be paid back at short notice? 
Many businesses will take out loans when starting up or to grow their operation. Business loan protection insurance will provide funds to the company to repay a loan, commercial mortgage or a director’s loan should one of the business owners die or suffer a critical illness.  
You can choose a decreasing amount as the loans are paid back over time or a fixed sum assured with the term of cover matching the loan term. 

Relevant life  

Relevant life Insurance allows a business to provide their employees with Death in Service (DIS) benefits outside of group life arrangements. In the event of the death of the insured, a lump sum is paid to the employees beneficiaries. 
There are many reasons to take out a relevant life policy, which include tax efficiencies for the business (offset against corporation tax), with no benefit in kind for the employee. Relevant life may be taken out by companies that are too small to qualify for a group scheme, an additional benefit for high earning employees or topping up benefits on a group scheme. 
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