As a business owner, you will understand the need to safeguard the future of your company. You need to think of every eventuality and take steps to manage them. One of the ways you can do this is to insure your business.
Now, there are all kinds of insurance options open to you. Public liability will protect your business in the event of a compensation claim made by somebody injured in your place of work, for example. And buildings and content insurance will cover you in the event that your property is damaged by a natural disaster, or if any of your equipment is stolen.
However, for the long-term future of your business, there are other policies worth considering. These are directly related to death and illness, two factors that could stop the wheels of your business turning.
Here then are four types of business protection you might want to consider.
Relevant Life Cover
This is effectively a life insurance policy you can take out on behalf of an employee or a shareholder that takes a salary from your business. Should they pass away while in your employ, a lump sum can be made to members of their family. Why should you bother with such cover? Well, you can use it to sway employees and shareholders to your company, and you won’t have to run at a financial loss by using your company profits to pay for the needs of the deceased’s beneficiaries. Relevant Life Cover can also be classified as a taxable expense, so this is one way to reduce your tax bill.
The loss of a shareholder is bad enough, but if the shares they hold pass on to their estate, your business might suffer because of the inexperience of family members trying to take some control of your enterprise. Shareholder protection insurance can alleviate this risk, as it secures a plan of action should the shareholder die or become too ill to contribute. Not only will family members be taken care of financially, but company owners and shareholders will be guaranteed a lump sum to purchase the shares held by the ill or deceased.
Key Person Insurance
If you lost a key member of your employees due to death or illness, you might experience financial losses as a consequence. Key person insurance can deflect such losses, as you would be guaranteed a lump sum of money to help you recover the losses caused by your valued member of staff.
Business Loan Protection
When losses are made because of the death or illness of a key member of personnel, the financial impact is such that you may not have the funds to repay your business loans. And should you become too ill to work or sadly pass away, others might have to deal with outstanding repayments. Thankfully, this type of protection can mitigate such risks, as some (if not all) of the money can be paid back to the loan provider.
For more information on business protection, get in touch with our team at Blue Strawberry. With advice on the various types of insurance you might need, we will ensure your business is protected both now and in the future.