What is business protection?
Put simply, business protection helps to protect your client’s business should a director, partner, member or key employee suffer a critical illness or die. Having this financial protection in place is vital in allowing businesses to recover quickly and minimise the impact should the worst happen.
Any business, large or small, is likely to face the unexpected at sometime. But your clients can reduce their risk by planning ahead. Whether your client is in a partnership, limited liability partnership (LLP), a sole trader or a company, we’ll take you through what you need to know when advising your clients about the importance of having adequate business protection in place.
And with a Business Menu Plan from Royal London you can mix and match a range of covers and benefits to tailor a plan that suits the needs and budget of your client’s business.
“You know what keeps the UK’s millions of small to medium-sized businesses up and running? It’s the people… and copious amounts of tea and coffee, of course.”
“As a financial adviser, it’s my job to help these businesses to thrive, and to look out for their owners, like senior partner Linda here. But what if something nasty happened to Linda? It would be devastating.
“But without business protection, things could be even worse for both the business and Linda’s family.”
“Imagine this coffee represents all the company cash. The business would have to pay out a share of the company to Linda’s family, which could be… very expensive. But, without any agreement in place, Linda’s family might not get a fair price either. There may be director’s loans to be repaid. As well as all kinds of other things to take care of. So now the business has a cash problem. And borrowing from the usual places, may no longer be possible."
“But… when you have Business Protection, you can help make sure your family is protected, your business partners are protected, your outstanding debt is protected, your shareholders are protected, and your key employees are protected.”
“So, with Business Protection, you can get an agreement in place, just like a will, to make absolutely sure… you’re in safe hands.”
“Speak to your financial adviser today to find out more. If you don’t have one already, you can find one in your area by visiting unbiased.co.uk.”
The main types of business protection
Key person protection
To protect against loss of revenue if a key employee dies or can’t work because they’re critically ill.
To help the other owners keep control of their business if a shareholder dies or is critically ill (also known as partnership and shareholder protection).
To help repay outstanding financial commitments, such as director loan accounts or bank overdrafts, if the worst should happen to a key person or shareholder.
If you'd like more technical information on the different types of business protection, there's more detail in Technical Central. Alternatively, you can download a copy of our Technical guide to business protection (PDF).
How Royal London can help you with business protection
We want to help you make the most of the opportunities in this market. Within the following pages you'll find all the tools you need to help plan, present and deliver business protection.
Whether you’re familiar with the market or just getting started, you’ll find expert advice, handy tips and time-saving tools to support you at every stage of the process.
Business protection opportunities
Identify new opportunities to write business protection and grow your business.