Protect your business against the loss of its most crucial assets, your key people.

You’ve built a successful business, that’s supporting your family and providing you with a pretty good lifestyle. You’re proud of what you’ve achieved and are looking at further growth and possible expansion in the future.

  • So what happens to your business if things don’t go to plan?
  • You don’t think twice about insuring your business against loss from fire or theft but have you considered the consequences to you and your business of losing a key person, director or partner?
  • Have you considered how you would pay off a loan signed by a director/partner who has died?
  • How will your family survive financially?
  • What’s the plan?
  • Is this something you’ve considered with your business partners?

There is a serious risk to a business in the event of a death or serious illness of a Co-Director, Key Person or Partner.  Managing this risk through proper planning and life cover is relatively inexpensive when compared to the potential benefits of having it in place.

 Shareholder Protection

Limited Company Protection


Partnership Protection


Key points to note

  1. When assessing any financial risk to your company, make sure to assess the financial risk of losing a key person, director, large shareholder or partner and set up what measures need to be put in place to alleviate that risk
  2. Does the company have any unsecured loans? Consider putting a protection plan in place for the calling in of the loans on the death or serious illness of a key person
  3. Does the business have funds in place to buy back a deceased shareholders share of the company from his/her family? Consider shareholder protection to enable the surviving shareholders to maintain ownership and control of the business. It also allows for the deceased’s shares to be bought back from his / her estate.
  4. Make sure the business has a plan in place and in writing that provides for the firm to buy up the shares of any partner or large shareholder who dies or becomes incapacitated
  5. Introduce and implement a business succession strategy that covers not only a planned retirement, but an unplanned death or loss of capacity.
  6. Make a will and set out your intentions regarding your shares in the business
  7. Review and revise your risk assessment and succession plan each year
  8. Don’t forget to communicate your plans to all stakeholders.

Good Business Protection is the foundation of a comprehensive financial plan and can help to minimise the financial impact of events beyond your control.

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