How Secure Is Your Business?

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Business protection is a crucial element in a company's financial future, but how many have cover in place? 

You may have covered the tangible assets in your business, but have you protected the most important asset; the people who contribute directly to your bottom line? 

If the answer is no, you could be putting your business at risk. After all, if you lost a key employee, this could impact the day-to-day running of the business, it could hit profits and create problems repaying an outstanding business loan.

Research by Legal & General in their State of the Nation's Small and Medium Enterprises (SMEs) report has found:

52% of businesses would cease trading in under a year if a key person became critically ill or died

47% of shareholders have no arrangements for their shares if they became critically ill or died

51% of businesses have some form of business debt of an average of £175,000

Safeguarding your business
Business protection insurance can help mitigate some of the risks. There are three main types of business protection:

  • Key Person Insurance provides a lump sum to the business on the death of an important member of the business.
  • Shareholder Protection Insurance provides a lump sum that will allow remaining shareholders to buy the shares of a deceased shareholder.
  • Business Loan Protection provides a lump sum to help a business pay any outstanding business loans.


Business Protection Insurance is designed to keep you trading. That's why making sure you have the right protection in place should be considered a vital part of running a business.

If you are one of the 54% of SME that doesn't have a relationship with a financial adviser talk to us! As professional financial advisers we can help you realise any risks you may and provide protection for the future of your business.

As part of our series "Getting to Know our Adviser...
“In this world nothing can be said to be certain, ...
 

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Wednesday, 05 August 2020

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