Business Protection Insurance
You'd insure the van and the premises. What about the people the business can't run without?
Most small businesses are two or three people deep in the things that matter, whether that's the founder who holds the client relationships, the director whose family would inherit their shares, or the fitter who's the only one certified for the machines. Business protection is life and illness cover arranged so the business itself survives losing one of them.
I advise company directors and business owners across Kent on the three core tools (key person cover, shareholder or ownership protection and relevant life plans) in plain English, sized to the business you actually run.
What working together looks like
The uncomfortable questions, asked kindly
Who actually generates the revenue? What happens to their shares? Could the survivors afford to buy them from the estate? I walk through the scenarios owners avoid thinking about, then quietly close each gap.
Structured and owned correctly
Business protection lives or dies on structure. Who owns the policy, who pays, cross-option agreements, trusts and the tax treatment of each. I arrange it properly, alongside your accountant where needed.
Sized to real numbers
Cover is built from your actual figures (profit attributable to a key person, share valuations, loan balances) so the business is neither underinsured nor paying for cover it doesn't need.
The three core tools
Key person cover
The company insures the life (and often critical illness) of someone whose loss would hit profits. The payout goes to the business, funding recruitment, covering lost revenue and steadying the ship.
Shareholder / ownership protection
Cover plus legal agreements so that if a co-owner dies, the survivors have the money to buy the shares and the estate has a willing buyer, instead of inheriting each other's problems.
Relevant life plans
A tax-efficient way for a company to provide individual death-in-service cover for a director or employee, often substantially cheaper than the same cover paid personally. See the dedicated page.
Business loan protection
Cover matched to business borrowing, especially where directors have signed personal guarantees that would otherwise follow them home.
Asked all the time, answered honestly
What actually happens to shares when a co-director dies?
Without planning, they usually pass to the deceased's family, who may want income the business can't spare, or a sale the survivors can't fund. Shareholder protection pairs insurance money with a cross-option agreement so both sides get a clean, funded outcome.
How much key person cover does a business need?
Common approaches include a multiple of the person's salary, or an estimate of the profit attributable to them across a recovery period of a couple of years. It's judgement guided by your accounts, and I work it through with you rather than quoting a formula.
Are the premiums a business expense?
Sometimes. Treatment differs by policy purpose and how it's set up. Some key person premiums attract corporation tax relief and others don't, and payouts can be taxable or not accordingly. I set out the position for each structure and coordinate with your accountant.
We're a two-person business. Is this overkill?
Two-person businesses are usually the most exposed because there's no bench. One policy each, priced for the actual risk, is often the difference between the survivor rebuilding and the business folding.
Can this cover critical illness too, not just death?
Yes. Most key person and shareholder arrangements can include critical illness cover, and statistically serious illness is the likelier event during working age. It's usually the right conversation to have at the same time.
Let's talk about business protection
A free, no-obligation chat is the easiest first step. Tell me what you're hoping to do, and I'll tell you honestly how I can help.