A business may depend on key people, ownership arrangements and promises made to staff. Insurance can help with some financial consequences if a covered person dies or becomes seriously ill, but it cannot guarantee that a business will continue trading. The right arrangement depends on the business structure, existing agreements and policy terms.
Key Person Insurance
This can be considered where losing a particular person would create a financial problem for the business. A policy may provide a benefit following a valid claim, subject to the insured event, cover amount, exclusions and ownership arrangements. The business should decide what costs it is trying to address before setting the cover amount.
Business or shareholder protection
Owners may need a plan for what happens to shares or control if one of them dies or becomes seriously ill. Insurance is only one part of that planning: the legal agreement, ownership of any policy and beneficiary arrangements also matter. Obtain appropriate legal and tax advice before putting an arrangement in place.
Relevant Life Cover
An employer may consider Relevant Life Cover as a way of providing a death benefit for an eligible employee. Eligibility, premiums, benefit payment and tax treatment depend on how the plan is structured and current rules. Do not assume that premiums or benefits always receive a particular tax treatment. Ask a qualified adviser or tax professional to assess the proposed arrangement.
Discuss your business needs
Explore the Business Insurance overview and its product guides. To start a business-protection conversation, use the authorised IM-Insured WhatsApp route. Opening the link does not submit an enquiry. We do not promise access to every insurer, the lowest premium or a guaranteed claim outcome.
