It is important to remember that your most business-critical assets are your people. Companies have two sorts of assets. First, there are its physical assets – offices, machinery, stock, motor vehicles and so on. Typically, these are almost always be insured by the company.
The second kind of asset is the people involved in the business. Success or failure is usually more dependent on human assets than any other factor, so it is critical that businesses protect themselves against the loss of vital individuals to secure their future.
Companies insure the Managing Director’s desk, but may fail to insure the Managing Director
We can assist you to protect the people that make your business what it is with key person insurance, director protection and shareholder protection.
The success of your business could be dependent on a few key employees – their skills, their connections, or innate knowledge of your business. Or it may be that you have a number of owner-managers and want to ensure management control remains with existing directors or shareholders if something happens to one of them. Whatever your concerns, we can offer solutions that can help.
Key person insurance
We can advise on how best to establish key person insurance so that you can protect against loss of profits in the event of the death or serious illness of your key employees.
Director and partner shareholder protection
Many private companies are owned by a small number of shareholders who are also Company Directors, heavily involved in day-to-day business affairs.
When a shareholder dies their shares often pass to their estate – typically their widow or widower or, perhaps, more distant family. Without appropriate financial protection and legal agreements it can be very difficult for surviving shareholders to purchase the deceased’s shares and keep control of their business.
We can advise you on how to protect your interests, and those of your fellow directors in your business with shareholder protection, so you have the means to purchase the shares of a director or partner if they die or if they become critically ill and can no longer participate in running the business. Thus, allowing you to maintain ownership and control.
Relevant life policies
Many small business owners are unaware they can arrange life assurance through their company. Relevant Life is a life insurance policy available to employers to provide themselves and key employees with an individual death-in-service benefit. It can also be a tax-efficient way for shareholder directors to take out life insurance.
We can advise on life assurance policies that are established via your business,
You can claim back Corporation Tax relief as a business expense, meaning that individuals need not fund their own policies.