KW: Business Income Protection Insurance
Meta description: In this blog, we answer ‘how can I take out business protection insurance?’ and the key considerations you may need to make.
Business protection insurance offers a company financial protection in the scenario of either its employees or owners becoming ill or dying. It is a form of commercial cover that can ultimately keep a business afloat when times get tough. So, how can I take out business protection insurance? In this article, we’ll offer an overview of this type of insurance, before outlining its benefits and explaining how you can secure business protection cover. Read on!
What Is Business Protection Insurance?
If an owner or employee of a business is temporarily disabled, has a critical illness, or is dying, business income protection insurance provides a financial safety net. There are several types of business protection policies available. You can take out cover specifically for partnerships, sole traders, shareholders and key employees. Business protection insurance is also used to cover the repayment of business loans in the event of critical illness or death. You can read more about the various types of business protection insurance – including shareholder protection insurance and key person insurance – here.
Do I Need Business Protection Insurance?
The truth is, whether you need business protection or not will depend on the specific circumstances of your company. Your cover should be based around what you need to protect the most – be that a key person, certain employees, a partnership, or a loan. You’ll need an understanding of the structure, strengths, and weaknesses of your business, in order to assess risks. Once you identify what you are protecting, you will be better placed to decide on the cover you need.
What degree of cover do you need? Again, this will come down to the circumstances of your particular business. You should certainly be taking into account factors such as; the sum that needs to be ensured based on the worth of every insured individual to the company; the right length to insure certain employees for; and relevant information on the individuals being insured that could impact on the policy – this includes factors such as their state of health, age, and engagement in risky or dangerous activities.
Business Protection Benefits
There are plenty of reasons why you can benefit from business protection insurance. The specific types of benefits your company will receive will depend on the type of cover that you’ve arranged. For example:
Business Loan Cover
Will give you the financial backing to repay business debts in the event of an owner dying or becoming critically ill. This can get businesses through difficult times, ensuring that they can keep up their repayments.
This pays proceeds to the remaining owners in the event of an owner or shareholder dying or becoming critically ill. This cover funds the buying of shares from the estate of the deceased for a value that is fair, allowing the remaining owners to retain control of the company.
Key Person Cover
This covers negatively impacted revenue streams in the case of a business owner, director, executive or head of department dying or becoming critically ill. The funds from business protection insurance can help an organisation navigate through ‘the storm’, replacing profits that have been lost, or simply financing the recruitment of a replacement for the key person.
Relevant Life Cover
When you protect employees with relevant life cover, their family will receive a pay out in the event of them becoming disabled, critically ill or dying. This form of individual life insurance – which can be especially suitable for small businesses – can be bought for company directors and owners, as well as employees.
Executive income protection
Works as a form of sick pay arrangement. Executive income protection provides a monthly benefit to the employee in the event that they are unable to work due to a medical reason. Pay-outs can be up to 80% of the employee’s income from the business.
How does key person insurance compare with shareholder protection? This guide compared the two types of cover
How Can I Take Out Business Protection Insurance?
Before you take out business protection insurance, there are several key considerations. That’s why it makes sense to seek out the advice of experts such as WIS Business Protection, who can help you to identify the right kind of business protection cover for you, and progress with a policy that suits your circumstances. Why not shop around and find the best deals on business protection insurance? Once you know exactly which kind of policy you need, you’ll be in an excellent position to compare rates from various business life insurance providers.
Get In Touch – Business Income Protection Insurance
At WIS Business Protection, our specialist team of professionals are here to answer your queries and provide you with all the information you need on business protection insurance. We give you quotations to compare and ensure your policy is set up as it should be in order to benefit your business as much as possible.
For more information on how I can take out business protection insurance or to talk to an advisor on business protection insurance today, call us on 02030111968.