Business Protection is designed to protect an interest in a business, if a key individual or shareholder within the company dies. You can add Critical Illness Cover to your policy to also secure a payout if a key individual suffers a serious illness such as cancer, heart attack or a stroke.
It’s split into three main branches:
Did you know that, according to Legal & General, 53% of the UK’s small businesses think they would cease trading in less than a year if a key employee died or became critically ill and unable to work? Business Protection is there to protect your company’s future.
The success of almost all small- and medium-sized businesses is dependant upon a few key people and the loss of such a person can often mean the beginning of the end for the business.
These key people can include the business owners, sales directors or indeed any other individual with specialist skills or knowledge essential to the ongoing success of the company.
When many business owners think about protecting their company the first thing that comes to mind is the premises, vehicles and stock.
Nearly everyone has insurance for these, but many forget about their most valuable assets – the people who make the business what it is.
Whatever the individual’s role, their loss can reach beyond just the cost of recruiting and training a replacement including:
According to the abovementioned report from Legal & General…
Based on ONS life expectancy data (2012-14), the chances of a healthy male passing away within the next 10 years are as follows:
1 in 62
1 in 29
1 in 12
Around 80% of all Critical Illness Insurance claims are made up of the ‘big three’ illnesses – cancer, heart attacks and strokes.
Not every incidence of these illnesses will be covered by Critical Illness Cover. Less severe incidences may not be included in the wording of your policy or may only trigger a partial payout, so it’s important to check definitions carefully.
The cost of Business Protection depends largely on the amount of cover you need. As with all Life Insurance written on individual lives, each person will need to be medically underwritten for Business Protection, which will involve a series of questions such as:
The below table details the monthly cost of Life Insurance Business Protection and Life Insurance and Critical Illness Cover for a healthy non-smoking individual aged 35, 45 and 55.
They’re looking for £150,000 of level cover (i.e. cover that will remain fixed throughout the policy term).
5 Year Policy
10 Year Policy
15 Year Policy
Life & Critical Illness Cover
Business Protection can vary in cost depending on the provider and the profile of the individual(s) you’re looking to get covered, so it pays to shop around. Below are some of the top insurers in the UK Business Protection marketplace.
Business Protection is more complicated than personal protection for a number of reasons, not least because of the variety of ways it’s paid for and taxed depending on the product that’s right for you.
We started Drewberry because we were tired of being treated like a number and not getting the service we all deserve when it comes to things as important as protecting our health and our finances. Below are just a few reasons why it makes sense to talk to us.
We deal with companies ranging from small startups to multinational corporations with millions in turnover so we are well equipped to help.
Please don’t hesitate to pop us a call on 02074425880 or email email@example.com.
Director at Drewberry
I had the pleasure of dealing with Jake Mills in organising my insurance. Jake was fantastic to deal with — his patience and understanding really helped.