Many people think that protecting a business involves insuring the premises, the contents and the assets. That’s true – it does. But when you think about assets, are you’re thinking about the material assets only, or are you thinking about the human assets within your business? That includes you!

One of the great Scots American entrepreneurs, Andrew Carnegie once said that if he lost all his factories, ships and railroads, as long as he had his people he would be able to get all of his wealth back again. As he said; “people create profits and not machines”.

Perhaps you should consider this, especially during these already uncertain times. It’s the people that make your business run smoothly, and without them (or even yourself) your business would have a hard time functioning.

Just think where your business would be if you were diagnosed with a critical illness, or died. There is a 68% chance of one man out of a group of four being diagnosed with a critical illness during his working life*. If you’re a partner or a small firm and one of your other partners dies, what happens to your business and their share? Who now owns that share of the business, and where does that leave you?

In many cases, when a director or partner dies, their share of the business passes to the family, who may not have the same interest in continuing the business that you do. And unless you have the funds immediately available to buy that share of the business back, your business could be at risk.

Business assurance is about protecting people, comprising three main areas:

Key person cover

This cover looks to provide financial support for the business protecting individuals who, due to their specialist skills, knowledge or connections are unable to do their job due to illness, accident or death.

Ownership protection

This cover provides both the funds and the framework to ensure remaining shareholders or partners retain control of their business along with ensuring the fair value of the business is realised at time of death or retirement.

Loan protection cover

Any loans from banks, director’s or partner’s loan accounts need to be repaid on death. This cover will repay loans on death or serious illness.

If you require further information into these areas of business protection please Contact Us.

We charge a fee of £495 for analysing the existing Business Protection arrangements (life assurance, critical illness and “key person” income protection cover) and formulating a recommendation in respect of Business Protection needs. This fee will be offset against any commission received from the provider. Details of any commission payments will be disclosed to you on request.

*Source: Munich Re Group 2007