Most businesses make sure they’re covered against the effects of fire or burglary – but what about their people? Financial protection is a crucial part of the planning process for any business - unfortunately, it’s one that’s often overlooked.
Businesses today would find it unthinkable not to insure against the effects of fire or theft. But what about the biggest asset of any business - its people?
How would a business cope if a key employee, vital to its running suffers a serious illness, injury or dies? The impact of losing them unexpectedly could be difficult to recover from.
Our Business Menu Plan provides protection against the loss of a key employee as well as a partner, member or shareholding director. It offers you the flexibility to mix and match a range of covers to suit your client’s individual needs with the option of different terms and cover amounts as well as a number of trust solutions.
And with our Helping Hand service, your clients’ will have access to a recruitment specialist at no extra cost. They’ll help source a list of temporary replacements within 48 hours. A legal helpline is also available to give your clients advice on all aspects of employment law.
Royal London - we’ve got it covered.
Protecting a business doesn’t have to be more complicated than protecting a mortgage. The effects of someone dying or suffering a critical illness are just as devastating and could have serious financial consequences for any business.
By using a menu approach to business protection, you can help protect your client’s business.
For example, if your client is a shareholder within a business they could apply for all the cover they need in a single application even if each cover needs to be owned differently.
Our example business could have the following protection in place for £234.64 a month, which would provide cover for a range of needs for both the shareholder and the business:
Then if your client suffers a heart attack and they have to spend some time recuperating, this cover could support the business with the Key Person Income Protection helping to minimise the interruption to the business by replacing lost profits.
But what would happen if that shareholder decided not to return and wanted to sell these shares?
The Life or Critical Illness Cover written under a business trust with a supporting cross option agreement in place allows this to happen quickly. Having business protection in place would give the remaining shareholders the financial support to remain in control of their business as they could use the pay-out to buy your client’s shares.
Without this type of cover, there’s always the chance that the shares could be sold to someone else - maybe a competitor. And if they died the life cover would also pay out, allowing the business to repay its debts.
The added benefit of a menu plan is the flexibility to amend the cover should a change occur in the future, which is more likely in a business than a family. This could be a key employee leaving or retiring, or the company taking on a loan to help with expansion plans.
These are obviously just suggestions - you can create your own package from any of our covers, tailoring them to suit your client’s needs and budget.
Key person replacement – If your client loses a key person, our Helping Hand support service gives them access to a recruitment specialist, who'll provide them with a list of suitable temporary or permanent replacement candidates within 48 hours.
Key Person Income Protection - Make sure your client's business is protected if a skilled employee can't work because of an injury or illness.
* This example is for illustration purposes and does not represent actual customers. Quotes are based on a client who’s a non-smoker and aged 47 next birthday. Plan term is 15 years with a deferred period of 8 weeks. Premiums are correct as at 15 November 2017. For full details of risk factors, exclusions, limitations and terms and conditions, please see our plan details.