There are a few different types of Business Protection Insurance to choose from, depending on what you’re looking to get covered for.
Key Person Insurance
Is a form of Life Insurance (sometimes called Keyman Insurance) that pays out a lump sum if a key staff member passes away. It provides financial protection for the loss of someone essential for the everyday running of the company.
Shareholder Protection Insurance
Provides cover if one of your shareholders passes away or is diagnosed with less than 12 months to live. Like Life Insurance, it pays out a lump sum.The cover allows the surviving shareholders to buy back the stake of the company controlled by the person who has passed away or is critically ill.
Business Loan Insurance
Provides cover if someone who is key to repaying outstanding debts passes away or is diagnosed with less than 12 months to live. The payout can be used for company overdrafts, company loans and mortgages, director’s loans, venture capital funding, etc.
Relevant Life Insurance
Protects a company director or employee. It pays out a cash lump sum to the family of someone if they pass away or are diagnosed with a terminal illness. The limited company pays for the cover, which means it’s tax-efficient, and the monthly premiums are much cheaper (up to 50%). Premiums also often count as a business expense.