To lose a director or other key employee as a result of death or major illness can have a major impact on the bottom line. It could even result in the business wound-up or taken over.

This is an area often overlooked but we can help you guard against the very considerable risks. High value protection can cost less than you think. And even if you have cover in place, reviewing it could save money.

Whilst striving to make a business grow it is important for companies to consider what is necessary to protect and preserve the business:

Keyman Insurance

Most businesses insure assets such as buildings, plant and machinery against loss yet fail to do the same for their key employees.

Every business will have certain directors or employees who are vital to the profitability of your company. The death or incapacity of such a key person may severely affect the profits of the company. To compensate for such financial loss, a company can take out a “keyman” policy on the life of the individual concerned. This policy will pay out a lump sum on their death or the diagnosis of a critical illness directly to your company.

Shareholder Protection

The interests of major shareholders in private companies, family concerns in particular, normally pass to the spouse and/or children on death. Problems arise when these beneficiaries do not wish to take an active role in the company or are forced to sell the shares. If such a sale is to an outsider it may be to the detriment of the remaining shareholders or directors or even to the company itself. And even if the surviving spouse or children do not sell their shares it may be that they do not have the necessary skills to make an effective contribution to the success of the company. The shareholding could also become fragmented if the shares are left to a number of beneficiaries. Again this might disrupt the effective management of the company.

These problems can be reduced or avoided by arranging appropriate life assurance policies for the purchase of the shares on the death, disablement or retirement of a shareholder. The cover is payable directly to the company upon the occurrence of the insured event.

To find out more please contact us..