Is your business at risk if ‘the worst’ happens?

 

Business owners insure their premises and equipment but often forget about their people. This can create problems for families who aren’t protected and where there is no clear succession planning for the business in the event of death or serious injury.

I have been advising companies for nearly 20 years and in that time business protection has never been more important than it is today. The onset of the global pandemic has pushed this quickly up the agenda for many firms as “what if” scenarios become ever more prevalent.

Businesses must give full consideration to their insurance and protection requirements, including:

  • Shareholder protection

Do you know what will happen to the shares in your business if you die or become seriously ill? Will they pass to your estate? Do you have a partner who would end up running the business with your dependants? You can make sure that your estate gets the real value of your business and your partner gets their share

  • Loan protection

Many business owners are unaware that it’s possible to protect loans against the death or serious illness of shareholders, giving peace of mind and security to the business and allowing the loan to be repaid.

Directors’ loans to the business must be repaid on death. You can insure against this so that the business doesn’t suffer as a result of having to make an immediate cash payment to the director’s estate.

  • Keyperson insurance

What would happen in the event of the loss of a key person to your business? You can insure against lost profits or revenue, allowing the business to stay afloat while you find or develop a suitable replacement.

  • Relevant Life insurance

If you arrange life insurance through your business you can make a significant tax saving on the premiums and still benefit from the same level of cover.

 

Hopefully ‘the worst’ will never happen to you or your business. However, you can ensure that you are fully prepared if it does. I can offer genuinely independent financial advice for you and for your business. An initial meeting or consultation is free of charge so do feel free to contact me on 07843217969 or by email Rebecca.dorrian@chasedevere.co.uk for a no obligation chat about what we can recommend to support you.

Rebecca Dorian

This article was written by our Trusted Partner, Rebecca Dorrian

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