Protection
Business Protection
Protect your business if a key person dies or becomes seriously ill. Key person insurance, relevant life policies and shareholder protection, with tax treatment depending on the policy and your circumstances.
We compare policies from leading UK insurers
Why Business Protection?
If someone critical to your business dies or becomes seriously ill, the knock-on effects can be devastating. Lost revenue, broken client relationships, recruitment costs and outstanding debts can all threaten the company's survival.
Business protection policies give you the funds to keep things running during a rough patch, buy out a deceased partner's share, or repay business loans that were personally guaranteed.
We work with your accountant and solicitor to put protection in place that's both solid and tax-efficient. Some premiums may qualify for corporation tax relief, subject to the policy's purpose and HMRC's conditions.
Types of Business Protection
Key Person Insurance
Pays the business a lump sum if a key person dies or is diagnosed with a critical illness. Cover can address lost profits, recruitment costs or loans. Premium tax relief depends on the policy's purpose and structure; loan or capital protection may not qualify.
Relevant Life Policy
Relevant life cover can be tax-efficient for eligible directors and employees. Qualifying premiums are normally free of benefit-in-kind and National Insurance charges. Benefits held in trust are normally outside the employee's estate, but trust tax charges can apply.
Shareholder Protection
Makes sure the surviving shareholders can buy the deceased's share at a fair price, keeping control of the company. Works alongside a cross-option agreement drawn up by your solicitor.
Tax-Efficient Cover for Directors
Relevant life premiums may qualify for corporation tax relief where they meet the wholly and exclusively business-purpose test. Qualifying cover normally has no benefit-in-kind charge or pension annual allowance impact. Benefits are normally outside the employee's estate, but discretionary trusts can face periodic and exit charges. Ask your accountant about your circumstances.