Telephone: 01206 331697 
Mobile: 07811 186600 

What Is Your Biggest Business Asset? What Do You Insure? 

Most businesses insure property and obvious assets. They take out indemnity and liability insurance and insure buildings and property against loss. However, many businesses forget that their most valuable asset is probably the people in the business.  If a director or key staff member dies or becomes critically ill, there can be serious financial consequences which can cripple or even kill the company. This is an insurable risk and the key issues are here in our Business Risk Short Guide.  

Our firm The Insurances Company, will work with you to establish the areas of risk posed by the death or illness of your directors and/or employees. We will then provide you with a costed risk report on the solutions we recommend. As your business evolves over the years and the risks change we will be there to provide ongoing support. 
Shareholder Protection 
A recent study by Legal and General about what would happen to the shares of a shareholder who suddently dies. It indicated that: 
26% the heirs would retain ownership but not work in the business 
17% the heirs would become active in the business 
15% the heirs wouldn't receive anything and shares go to the business 
13% the business would fold 
9% the shares would have to be sold to a 3rd party 
The same study looked at how the purchase of the shares would be financed. 
52% from personal wealth 
20% from a bank loan 
14% from business insurance 
24% from business cash reserves 
7% from personal pension fund 
Often known as a "Business Will", a company needs a succession plan and a strategy to ensure that the business can continue to function on the death of a shareholder. Funds need to be available to settle the financial inheritance of heirs and to avoid the company being controlled by those heirs who may not be appropriate for the business. In tandem with a copmany shareholder agreement we will help you with an insurance that will help the business will continue to function with funds you need to pay the estate of the deceased for those shares. 
Key Man Insurance 
The death or long term illness of a technical expert or a key manager is a threat to a successful business. Simple, cost effective insurance is vital to minimise this risk by having cash available to replace staff as quickly as possible. This can also be used to replace income that has been lost. 
Loans Insuring company directors and ringfencing personal business loans 
Many company directors take out a business loan and insurance can be used to repay this debt in case of death or critical illness. 
Such insurance ensures that business owner’s families will be secure, without business and money worries at a very difficult time. 
Where a client has invested their own money in the company recovering this money can become complicated, especially as the loans must be immediately repaid on the death of a director. 
Without insurance the obligation to repay the debt could threaten the business and of the business fails as a result of being unable to repay the loan, the director’s surviving family could be financially compromised. 
A directors’ loan will ring-fence an individual director’s investment, creating a path to repay their initial loan as the business becomes profitable. Setting up protection against their death will allow the loan to be repaid without threatening the profitability of the business. 
Critical illness cover is also be an option. Taking out life cover with some element of critical illness cover attached means that a sum will be paid if a director is diagnosed with a condition listed in the policy. 
The condition might prevent the successful running of the company but the lump sum the policy provides might bridge the gap until they are back on their feet 
Staff Attraction and Retention 
Companies stand a greater chance of attracting and retaining good staff by providing added benefits in an employment package. We can provide group life and illness schemes, as well as individual life insurance, critical illness insurance and income protection for employees and directors. 
How Much Will This Cost? 
Business life insurance and critical illness insurance is no more expensive than personal protection and is underwritten in exactly the same way. The cost is borne by the business and your accountant will advise you on the tax implications. A company needs to ask what would be the cost of no insurance? 
How We Are Paid 
We do not charge a fee for arranging insurances. We receive commission for arranging insurance. 
Why Would You Use Us? 
We save you time, money and stress 
Meetings over Skype, Zoom or Teams. 
We are a trusted financial resource for short and long term goals with great client recommendations
We do not charge our clients a fee as we recieve a commission for arranging insurances. 
Call us on 01206 331697 or 078 1118 6600.  
Email us on 
Find out how we can help you with your insurance. 
By completing this form you voluntarily choose to provide personal details to us via this website. Personal information will be treated as confidential by us and held in accordance with GDPR May 2018 requirements. You agree that such personal information may be used to provide you with details of services and products in writing, by email or by telephone. 
By submitting this information you have given your agreement to receive verbal contact from us to discuss your mortgage requirements. 
Business Protection Insurance
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