Protecting your business means protecting the people who make it successful. Business Protection insurance helps safeguard your company against the financial impact of losing a key person, director, or shareholder through death, illness, or injury.
A Relevant Life policy is a tax-efficient life insurance plan set up and paid for by a business to provide death-in-service benefits for an employee or company director. Unlike traditional group life schemes, Relevant Life policies are tailored for smaller businesses or company directors who may not have access to a wider employee benefits package. If the insured person dies or is diagnosed with a terminal illness while covered, the policy pays out a lump sum to their chosen beneficiaries via a discretionary trust. This ensures the benefit is paid outside the company and the employee’s estate, usually without inheritance tax. For employers, premiums are generally treated as a tax-deductible business expense, and for employees, the cover is not classed as a benefit in kind, making it a highly efficient way to provide valuable life cover.
Key Person Insurance (also known as Key Man Insurance) protects a business against the financial impact of losing an essential employee or director due to death or critical illness. A “key person” is anyone whose knowledge, skills, or leadership are vital to the company’s ongoing success. The policy is owned and paid for by the business. If a claim arises, the payout goes directly to the company, helping it cover potential losses such as reduced profits, recruitment costs, debt repayments, or operational disruption. This form of protection gives businesses peace of mind that, in the event of losing a key individual, they have the financial support to continue trading and implement recovery or succession plans.
Executive Income Protection is a type of insurance designed for company directors and key employees of the business. It protects their income if they’re unable to work due to illness or injury, while offering tax advantages to the business. The policy pays a regular monthly benefit to the employer, which can then be used to maintain the employee’s income and ensure continuity within the business. This helps the company support valued team members while avoiding financial strain during long-term sickness. Executive Income Protection is especially valuable for limited company directors and senior employees, offering a tax-efficient and structured way to protect personal income and business performance.
Shareholder Protection ensures business continuity and control if a shareholder dies or becomes critically ill. In these circumstances, their shares would typically pass to their estate or next of kin, which can create uncertainty for the remaining shareholders and the business itself. With a Shareholder Protection arrangement, each shareholder takes out a policy (often written in trust) that provides the funds needed for the surviving shareholders to buy back the deceased or ill shareholder’s shares at an agreed valuation. This ensures that ownership remains with the existing business partners while the family of the deceased shareholder receives fair value for their shares. It’s an essential safeguard for any company with multiple owners, providing security, continuity, and control in challenging circumstances.
Our team searches an extensive panel of the UK’s largest and most trusted insurers, taking the time to carefully compare policies, features, and benefits to ensure each client receives the most appropriate protection tailored to their individual circumstances and needs.
By speaking to one our advisers you’ll be covered by the Financial Services Compensation Scheme.
The advice we give our clients is completely free of charge. We never charge a penny for the services we offer.
We arrange for all policies we set up to be placed in trust, ensuring our clients receive the full benefit of tax-free claims.
