Is Business Loan Protection Compulsory?

We have taken out a sizeable business loan. I am wondering whether it is mandatory or just best practice to insure outstanding corporate debt?

Question asked by Claire Cook

No, Business Loan Insurance is not mandatory.

However, it’s true that many banks require Business Loan Insurance before agreeing to a business loan. This is because they want to make sure their loan will be repaid even if you pass away and your business suffers as a result.

You’ll know if your bank requires Business Loan Protection as a stipulation of your loan. Either the bank will have mentioned it or it will be in your loan agreement.

It’s always worth asking an independent insurance adviser for quotes rather than going with the cover the bank offers. This is because the bank may be tied to a few or even just one insurer, limiting the scope of their search. As a result, the bank may not find you the best deal.

Compare Top 10 UK Providers

Takes approx. 60 seconds
Verified by Norton Symantec icon
 Or Call Us

Frequently Asked Questions

Contact Us

Head Office & Pensions and Investments
Senator House
85 Queen Victoria Street
Personal Insurance & Accounts Payable
Telecom House
125-135 Preston Road
Drewberry London Office MapDrewberry Brighton Office Map

If you are unhappy with our service, we have a complaints procedure, details of which are available upon request. If you are unhappy with how your complaint has been dealt with, you may be able to refer your complaint to the Financial Ombudsman Service (FOS). The FOS website is

Drewberry Ltd is registered in England and Wales. Companies House No. 06675912

Drewberry Ltd registered office: Telecom House, Preston Road, Brighton, England, BN1 6AF. Telephone 0208 432 7333

Drewberry Ltd (Financial Conduct Authority No. 505473) is an Appointed Representative of Quilter Wealth Limited and Quilter Mortgage Planning

Limited, which are authorised and regulated by the Financial Conduct Authority.


Drewberry™ uses cookies to offer you the best experience online. By continuing to use our website you agree to the use of cookies including for ad personalization.

If you would like to know more about cookies and how to manage them please view our privacy & cookie policy.