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Financial protection should key staff become seriously injured or die
Business protection policies ensure that a business remains protected financially should a key employee, director or owner suffer a critical or terminal illness or worst case die. Financial lumps sums are paid to the business to cover loans, buy shareholdings, support or replace key individuals or to do as the business sees fit.
No one ever wants to think that it is going to happen to them or their fellow colleagues. Proactive businesses secure their future by considering the risks, protecting against them and giving themselves peace of mind that should the worst happen the damage and disruption will be minimal.
Business protection policies cannot be bought directly on the internet, a qualified advisor must be used. As Roots Insurance Brokers is part of the Vestura Group we can offer this via our sister company The Mortgage Lodge.
If a crucial director or employee is seriously injured or dies, receiving financial support can help fund sick pay, source, find and pay for a replacement, or bridge lost revenue whilst the individuals is away from the business.
Ensure that your business can afford to buy back the shares of critically or terminally ill shareholders, or those that unfortunately die, by receiving a pre-agreed financial lump sum should the worst happen.
Almost all businesses. Smaller firms rely heavily on just one or two key staff who are often also owners and directors, whilst medium and large companies have bigger commitments and more complex arrangements that need protecting.
On almost all business protection policies the premiums are; paid for monthly, paid for by the company, are not an allowable expense, in the event of a claim are paid tax free to the company.
This is a question that you must discuss with the advisor. It is commonplace for policies to be written in trust, but every case has to be reviewed and decided on its own merits and requirements of the company.