Posted: 21 / 07 / 2023

Article by: Taylor Hughes, Insurance Advisor

 

Business Insurance can be a complex topic. There’s so many options available, and they all work in slightly different ways, which impacts the people who are covered and the parts of the business which are protected.

To make things easier, I’m going to delve into my top 5 business insurance picks.

Shareholder Protection

Shareholder protection provides business owners with a lump sum pay-out to purchase shares back from a co-shareholder that has passed away or been diagnosed with a critical illness.

The business therefore won’t suffer any financial consequences, and the remaining shareholders can regain control of the business.

Covers: Only the shareholders of the business.

Key Person Insurance

Key person insurance provides a business with a lump sum payout in the event of a key person passing away or becoming critically ill. The key person can be anyone who’s skill, knowledge, leadership or experience has a significant impact on the business’ success.

Covers: Anyone in the business that’s key to making it successful, not just in monetary terms but also via their experience, knowledge or qualifications.

Relevant Life Insurance

This is a form of life insurance taken out and paid for by the business. It usually covers the company directors; however, employees can also be covered in a similar way to death-in-service.

The policy is written into a trust and paid to the chosen beneficiaries. The business cannot benefit from the policy proceeds. The premiums are also classed as a business expense and not taxed as a benefit-in-kind.

Covers: The business owners, business directors or employees.

Loan Protection

Loan Protection provides the business with a lump sum pay-out in the event of death or terminal illness of the person who guaranteed the loan.

The types of loans covered by this insurance include:

  • Commercial loans & mortgages
  • Director’s loans
  • Venture Capital loans
  • Personal guarantees

Covers: The person who secured the loan, usually a director.

Business Private Medical Insurance

This scheme is taken out through the business for the benefit of all owners, directors & employees. It gives employees access to treatment outside of the NHS, such as, but not limited to, GP appointments, dental & optical, advanced cancer cover and diagnostic tests.

It allows employees to have the choice of specialist consultants based on the issue, hospitals and time of the treatment.

You can personalise what’s covered based on what’s important to you.

The premiums are taxed as a benefit-in-kind for members of the scheme.

Covers: Anyone within the business.  

If you’d like to know more, I’m always up for a chat, and I’d love to talk you through the different options on the market. You can contact me on 0161 667 9846.