Business Protection

 

Business protection is a way of protecting your business should a key person, partner or director die or contract a critical illness. It can help ensure that your business can continue trading in these circumstances.

 

Running a business always involves an element of uncertainty. Premises can be rebuilt, plant or products replaced, but the recovery of a person is not nearly as clear cut, regardless of whether that person is an employee or the owner. There are no guarantees that someone who has suffered a major health crisis will be able to perform at the same level as previously or even return to work. That’s why it’s especially important that critical illness cover, as well as life cover, is in place to help ensure that the business can cope with the loss.

 

At Plus 4 Financial Services we offer advice on the following types of business protection.

 

Partner/Director Share Protection

 

What is Partner/Director Share Protection?

 

The loss of a partner or director may destabilise the business and can quickly lead to financial difficulties. Partner/Director Share Protection means if the worst does happen, the remaining directors or partners can stay in control of the business.

 

How does it work?

 

In the event of a partner or director dying, falling terminally or critically ill, Partner/Director Share Protection can provide a sum of money to the remaining partner(s) or director(s). This means that in the event of a claim the policy could pay out an amount sufficient to purchase the deceased or critically ill partners/directors interest in the business.

 

Key Person Protection

 

What is Key Person Protection?

 

Key Person Protection helps safeguard a business against the financial effects of death, terminal illness, or critical illness* of a key person.

The loss of a key person may result in reduced sales, loss of profit/turnover, wasted time, recruitment costs, the disruption of development plans or increased workloads for remaining staff.

 

Who is a ‘key person’?

 

A key person is an employee whose continued absence would affect the profits of the business. Someone whose skills, knowledge, experience or leadership are important to its continued financial success. Examples of a key person include, but are not limited to:

 

Sales director
IT specialist
Managing director
Head of product development
Technicians and R&D personnel

 

If your business has an individual or individuals who are fundamental to its success, you should consider Key Person Protection.