Business Protection / Cover
Life Insurance
Business protection is an inexpensive insurance designed to protect your business from the adverse financial effects of the loss of an important person, partner or shareholder. This can be especially useful for smaller businesses where the loss of a colleague or shareholder can have a far greater impact than in a larger corporation.
There are two main types of business protection available:
Partnership / Director Share Purchase
Are you a share holder or director of a successful small to medium enterprise?
Have you given thought as to what the effects will be on your company, should something unforeseen happen to you or one of the share holders?
- Who will have control of the critically ill or deceased’ share?
- Will that share be available for purchase by you or the remaining shareholders?
- Will you or the remaining shareholders be able to afford the payment?
- How will the price and terms be determined?
When an event like this occurs, as so often does, the remaining parties will usually be burdened by many simultaneous challenges at a time when they can least afford it;
- Loss in revenue generated by the shareholder
- Replacement of that person with someone of similar experience
- Resolving outstanding issues and income generating activity associated to the person, to mention a few.
Our experience show that this simple planning exercise is almost always neglected and will always have severe consequences for the effected person’s family and the remaining shareholders.
The fact is that by putting in place a simple "Cross Option Agreement" it will alleviate all of the problems related to the legal issues and buying and selling of the said share. Shareholders will know beforehand, the price, terms and when a share could be purchased.
Payment for the share can be solved by putting in place inexpensive Business Protection Insurance connected to the "Cross Option Agreement".
It’s like drawing up a "Corporate Will"…… Essential!
Submit a query or give us a call on 084567 11100 to speak to one of our qualified advisors.
Key Person
Key person insurance is an inexpensive assurance contract that protects a business against the effects of losing a prominent and valuable employee. This type of cover injects a lump sum of cash into the business in the event of the death of a key staff member. Examples of a key person could be a top salesman or a head designer, someone whose death would have a direct impact on the company’s income. This will usually take the form of a term assurance policy, and the amount of cover needs to be carefully worked out in collaboration with your financial advisor.
Key man insurance protects the company from:
- Loss of income generated by the key employee
- Costs incurred in replacing the employee with a person with similar experience
Submit a query or give us a call on 084567 11100 to speak to one of our qualified advisors.