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ChessWe’re often encouraged to take out insurance and protection policies to support ourselves and our family, should the unthinkable happen. While preparing for certain circumstances is never pleasant, most of us understand its importance.

However, what if that protection were to extend beyond your personal assets and into your business? Have you ever considered how your business would cope in the event a key person was suddenly unable to work? What impact would that have on your company?

While these are troublesome thoughts, it is something you can, and should, prepare for. Below we explore the importance of business protection for you and your business:

Key considerations for business protection:

Have you ever thought about what would happen if your business partner suddenly became critically ill or passed away?

Would you like to ensure the profit your business produces remains sustainable should a key person become critically ill or pass away?

Could you work with your business partners spouse or next of kin if they passed away?

When a key person in a business dies it can have a catastrophic effect of the finances of a business. You can help protect your business against the death, terminal or critical illness of a key person with key person protection. By protecting your loans and your profit, you’re protecting the overall value of your business.

Small or medium sized businesses often have one or two key people that can put the company at risk if they are out of action. A key person is someone whose knowledge, skills and experience are crucial to the success of the business, playing an essential role in a company’s ability to generate income. This may be the business owner, an employee with a specialist skill set, or other key people deemed hugely important to the prosperity of the business.

Key person protection is a life assurance, or a life assurance and/or critical illness cover policy, owned and paid for by the employer, so any pay-out is payable to the employer.

Key Person Cover:

Key Person Cover pays for the cost of replacing a key member of staff if they are unable to work due to illness, injury or death, allowing the business to put measures in place to keep everything running. Furthermore, Key Person Cover can provide essential revenue to a business when a key person is unable to work.

This form of business protection can pay the business a monthly income, to cover the loss of earnings if a key person is no longer able to work. Alternatively, funds can be used to replace that person and therefore keep the business running as usual, or as close to usual as possible, under the unfortunate circumstances. The financial consequences of a disability, extended illness or death could be devastating not only for you, your family and your lifestyle, but also for those depending on you within the business.

Having the right insurance can provide you with confidence and security, knowing you have a sound strategy in place to protect your business and its assets from potential and unexpected setbacks. By working with the Business Protection Advisers at Cooper Associates, you can take comfort in knowing you have the right cover in place to keep your business up and running should the worst happen.

Our Advisers will meet with a client to have thorough discussions, where we will gain an understanding of your business risks and requirements, and establish a bespoke solution to ensure your business is protected against the unknown. Our advisers will assess the insurance cover you may already hold, your business turnover and size, your operating history, and the nature of your industry, as well as how you manage risk.

Experience has taught us that while some businesses may appear the same on the surface, the aims and goals for each business can be hugely varied. This is what drives us to take the time to learn and appreciate what is important to you, when helping you pursue appropriate business protection.

How much cover do I need?

When calculating the extent of any business continuation cover, you need to consider the following factors:

  • Loan repayment
  • The replacement of lost profits
  • The cost of recruiting replacement personnel
  • The repayment of Partners or Directors loan accounts

Our Business Protection Advisors can tailor a variety of policies to suit any business. We source the most suitable policies based on your budget and funding options, with the ability to customise policies where necessary. We negotiate the best terms for you, to secure the right cover.

If you are considering advice on business protection, do not hesitate to call 01823 273880 or email for a fee-free, no obligation discussion. We will then do our best to ensure that your business will not only survive should the worst happen but thrive.