Many businesses accept and acknowledge that their most valuable assets are their people. Often the success or failure of a business will depend upon the very same. The specialised knowledge, skill set or contacts are usually vital to the profitability of the business. Our experience tells us that businesses spend money and time insuring the building, the contents, the cars, and even mobile phones. However, the major asset that remains unprotected will be the key drivers or owners of the businesses.
Cover your business against the loss of key people
The sudden loss of a key figure can prove devastating to a business and can cause long-term irreparable damage. Our Business Protection policy offering is designed to pay out a cash sum if the person insured:
- Meets the terminal illness criteria of insurers
- Becomes permanently totally disabled (if you’ve chosen additional critical illness cover)
Key Person cover involves a company taking out a policy on the life of each Key Person. The business owns the contract and pays all the premiums, and all benefits arising from a claim are paid to the business.
For example, a simple 5x multiple of salary can be used to assess the amounts covered, or a business loan or credit line may be the preferred route to deciding on the sum assured.
This is where Aston Lark can assist in guiding you through the process of deciding on the appropriate amount and length of the cover. As a whole of market broker, we can source on premium and cover to get your key people covered, and your business protected.
Keep control over your business
Shareholder or partnership protection cover is a vital but often overlooked element for a business that has more than one shareholder. The purpose of this cover is to ensure that control remains with the surviving business owners, rather than passing to someone who is unwanted, unwilling or unable to contribute to the running of the business.
Changes are often needed to ensure that the shareholding of a deceased shareholder is dealt with in line with the wishes of the remaining shareholders.
Financial planning is needed to ensure that sufficient funds are available to facilitate any purchase of shares.
This policy allows the remaining shareholders to buy the shares and retain control of the company, while ensuring that the family of the deceased are adequately reimbursed.