It takes hard work and determination to build up a successful business, which is why it makes sense to protect your company with business life cover.

All too often businesses depend on one key person – or a handful of people – who have specialist knowledge, contacts and skills. In small businesses just one person can be responsible for everything.

If the key person – or you as a business owner – suddenly became unable to work how would you cope? Business life cover takes away that uncertainty by putting in place a strategy and financial support in the event of an unexpected and serious threat.

What life cover is available for businesses?

Every business is different and business life cover is tailored to reflect this, often incorporating a number of different insurance protection policies.

These are designed to identify and defend any possible vulnerabilities in a worst case scenario. The main areas that can be protected by business life cover include:

Key person insurance

If there is one person in your business who plays a disproportionate role in its success you may need key person insurance as part of your business life cover.

Take for example if you are the business owner and the success of the company is down to your unique set of skills or knowledge, or if your brand relies heavily on the name or reputation of one person.

It is not only business owners though, key person protection can also recognise other employees integral to the business, such as key sales people or engineers with specialist knowledge – basically anyone without whom your business would struggle to continue at the same level.   

Key person insurance will provide a payout in the event of the death, terminal illness or critical illness of a person integral to the company’s success.

Business protection insurance

Business protection insurance can be seen as a life insurance of sorts for your business. All companies are dependent on money so when a serious financial problem strikes unexpectedly you need to be prepared.

Business protection insurance forms part of a business life cover package to offer security in the event that a major part of your financial infrastructure fails – for example it will cover loan repayments in the event of a serious failing or if a debt suddenly needed to be repaid.

Business protection insurance can also be tailored to pay off debts in the event of the business owner’s death.

Ownership/ shareholder protection

Business partners or shareholders can be left in a very difficult position if the status quo of a company is threatened by the loss of a major shareholder or partner.

As shares pass to family there is a chance they may seek to sell them to release cash, which could undermine the stability of the company.

Ownership or shareholder protection will put in place business life cover that allows the remaining partner or shareholders to buy the shares.   

Employee protection

Retention of workers that support the continued success of your business should not be left to chance. Putting in place employee benefits that also afford them reassurance in times of need, such as private health care and life insurance, will help to make workers feel valued.

A workforce that is appreciated and looked after financially is more likely to remain loyal. If your staff are vital to the longevity of the business give them every reason to stay.

How can I protect my business?

Putting in place financial protection for your company through business life insurance is important to the longevity and stability of your company.

Markets - and life - can be unpredictable, bringing unexpected highs and lows. While enjoying the success of your business today, protect it for tomorrow with the right business insurance package.

Start by considering the strengths and weaknesses of your company – do you carry debt? Do you rely heavily on one key person? By identifying any vulnerabilities in the company you will be well placed to consider how best to protect your company with a tailored business life insurance package.

To make sure all aspects of the company are covered talk to an insurance adviser who will help you to consider all aspects of business life insurance cover and put together the right package for you.

To find the best business life insurance package for your company contact AMG Financial Solutions - Staffordshire on 01785 225983 or email stafford@amgfs.co.uk.

Issued for & on behalf of AMG by Market Avenue Ltd