What is Business Protection Insurance?

Business Protection Insurance is a way of mitigating or reducing the financial effects of an adverse or terminal life event relating to those who are key to your business.

Adverse life events covered by business protection insurance are contracts to provide financial protection from accident and sickness, or illness and disability, or even Critical Illness.  

Death is a terminal life event covered by business protection insurance are contracts to provide financial protection from death of a key person.

Depending on the type of business protection insurance policy taken out by you or on your behalf, a payment will be made either as a lump sum to the beneficiaries of the policy in the event of a claim being made.

 

What are the types of Business Protection Insurance?

The following are the types of business protection insurance available:-

  • Partnership Share Protection insurance pays out a lump sum to the surviving partner/partners to enable them to purchase the deceased partner’s shares from the deceased’s estate. Critical illness cover can be included in the event of a partner’s disability.
  • Director’s Share Protection insurance pays out a lump sum to the surviving shareholder/shareholders to enable them to purchase the deceased director’s shares from the deceased’s estate. Critical illness cover can be included in the event of a director’s disability.
  • Key Person Protection insurance pays out a lump sum to the Company to enable them to cover the loss of anticipated profits from the death or disability caused by critical illness of a key person.


Why should I take out Business Protection Insurance?

The key purpose of business protection insurance is to provide financial protection so that the business can continue with the least disruption in the event of a claim.

There are a number of factors about an organisation’s specific circumstances that will determine which of the types of business protection insurance that may be applicable based on their suitability and affordability.

 

How should I take out Business Protection Insurance?

The first and most important step after you have decided you may have a need for business protection insurance cover is to have a discussion with us to provide you with independent financial advice.

Once we have agreed what the most suitable type of business protection insurance cover is for your particular circumstances we make an application on your behalf to take out a protection policy based on how much you can afford and the amount of cover required, for a length of time to match your needs.

 

Want to know more?

Talk to one of our qualified financial advisers on 01553 777600 or e-mail us at enquiries@ringassociates.co.uk