All companies will have a variety of insurance, such as public and personal liability, company vehicle insurance, and commercial property insurance, as a minimum.

However, many businesses overlook the protection of their most important assets and fail to cover the very thing that could end the company and its income – the death or illness of the business owner or key person.

Business Protection is about protecting the business’s people and profits. These are the four areas.

Key Person Insurance

Most businesses will have individuals who are vital to the profitable running of the company due to their specialist knowledge or skills. The event of them suffering an illness, accident, or dying could lead to serious financial consequences for the business.

Critical person insurance protects the business with financial support in such circumstances.

Loan Protection Insurance

Many businesses have loans with banks or other financial institutions, and most lenders will want the outstanding balances covered by life and or critical illness cover.

It is also a common practice for business owners to lend money to their own businesses. Partners’ or Director’s loan accounts also need repaying in the event of death.

Shareholder/Partnership Protection

Should a business owner wish to retire due to death or critical illness, two problems may arise:

The first is control.

The remaining partners or shareholders will want to retain control of their business.

This usually means purchasing the deceased or retiring owner’s share of the business.

However, problems can arise when attempting to raise a substantial amount of needed capital. This was especially the case when the owner was a key person within the business.

Providing the cash needed through the correct type of insurance is the backbone of good succession planning.

The second is fair value.

Without the correct funding and agreement that defines the value of the business, there would be no guarantee that the sale of the business share would represent fair value at the time of death or retirement.

Shareholder/Partnership Protection provides the funds and structure to facilitate these objectives.


Many businesses only have the essential documents to run – The Memorandum and Articles of Association.

Other documents are needed to ensure that both the deceased/retired loved ones can receive the value of the shares and that the company has the option to buy them. And a Schedule of Assets and Liabilities so everyone knows what is owned and owed.

Business Protection Insurance is a crucial part of protecting businesses and their owners.

Please feel free to contact us at if you have any questions.