In todays modern world there are insurance products for virtually everything, the sport you play, the car you drive, the cycle you ride etc. But what about your business interests and your source of income? There is a certain type of insurance called business insurance which can protect you from many eventualities. There is a way in which you can safeguard your company in the event of an operational or financial fall out, this insurance is called business protection.
Within the term business protection are a multitude of different cover levels, with something suitable for most businesses both large and small. We can break it down into 3 levels or types of cover. Business protection is available for all business formats such as sole trader, partnerships, shareholders and key employees.
Should you need any type of business protection or just wish to discuss what it can do for your then our business protection advisors in Bournemouth can help you and your business get covered no matter where you are in the UK.
The main 3 elements are as follows:
Key Person Cover
This covers your business if a key staff member is lost to your business on a temporary or permanent basis resulting in a loss of income or turnover for the business. The loss can be due to many reasons such as critical illness, injury etc. Examples of people who’s loss affects income could be for example, a business owner or director, your CEO, finance director, top sales person or head of technology.
• You identify the key personnel in your business.
• You agree what their value contribution is worth.
• You can be covered for replacement recruitment costs
• Salary costs can be covered
• Loss of revenue due to key person loss is covered
This works in the same way as a personal mortgage covering debts.
• The sum assured and is equal to the debt
• The term is the same as the debt term
• The policy is owned by the business
• The business receives the assured amount if claims are filed
Shareholder and Partnership Protection Plan
This type of insurance covers a business in the event of a business owners death, injury or disability. To protect the businesses operational needs a plan is set out that details business succession to protect shareholders, staff, family, partners and employees. It is insurance bought by businesses to ensure available funds to purchase shares if an owner or shareholder dies.
It does sound more complicated then it is and our business protection specialists based in Bournemouth can help you set this up easily and with minimum fuss and stress.
Each business is unique and the cover will be tailored to that particular businesses requirements so no 2 policies are the same. We would always advise on having an assessment on your business protection requirements so you can make sure you are covered in the unfortunate event of key people and shareholder loss.
Speak to our expert team of business protection advisors based in Bournemouth and we can help you set up cover today.