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Business Protection


Independent Business Protection Advice

 

In simple terms, business protection serves as a safeguard for your business in the unfortunate event that a director, partner, or key employee experience a critical illness or passes away. Establishing this financial safety net is crucial in enabling businesses to swiftly recover and mitigate the effects if such a disastrous event occurs.

 

Any business, regardless of its size, is susceptible to unforeseen challenges. However, you can proactively manage these risks by preparing in advance. Whether your business operates within a partnership, limited liability partnership (LLP), functions as a sole trader, or runs a limited company, we will guide you through the essential aspects to consider.

 


What types of business protection are available?

 

Key Person Cover - This provides a safety net in the event of the death or critical illness diagnosis of a key person within the company. It protects the business from the financial impact of losing a key figure (owners / managers), whose absence would have a significant impact on the financial position of the company. This support enables the business to continue its operations as seamlessly as possible during a challenging period.

 

Shareholder Protection - In the unfortunate event of a business owner's death or the diagnosis of a critical illness, their portion of the business typically transfers into their estate. In many cases, the fellow business owners or shareholders may wish to purchase that share from the beneficiaries, but obtaining the necessary funds can be challenging and borrowing can be costly. Shareholder protection provides a solution by enabling business owners to repurchase shares from a co-shareholder who has been diagnosed with a critical illness or has passed away. This policy helps ensure that surviving owners retain control and mitigates any disruptions to the business.

Relevant Life Cover - This allows employers to provide a death-in-service benefit for their employees. This tax-efficient life insurance policy disburses a tax-free lump sum in the event of death or upon the diagnosis of a terminal illness. The company covers the premiums, typically considered an allowable business expense by HMRC, thus exempt from corporation tax. Importantly, these premiums are not classified as a P11D benefit in kind for the employee. Moreover, both the premiums and any lump sum benefit paid qualify for relief from income tax and National Insurance contributions.

Executive Income Protection – This is designed for small-medium businesses to cover the costs associated with offering sick pay benefits to an employee. The arrangement involves the employer (the policyholder) purchasing and funding the policy on the employee's life (the insured person). In the event that the employee falls ill or sustains an injury that makes them unable to work, the monthly benefit (up to 80% of the employee’s earnings plus employers NI and pension contributions) is paid to the employer (the policyholder). The employer subsequently channels this payment to the employee through the PAYE system to facilitate continued sick pay support. This usually counts as a tax-deductible business expense for the employer and is not a P11D benefit in kind, meaning there is no additional tax to pay as a result of having the cover in place.


Looking for business protection insurance advice
in Leamington Spa & Warwickshire?

Jack Bewick offers tailored and specialist business protection advice Warwick, Leamington Spa, Kenilworth, Stratford upon Avon, Coventry & Warwickshire, Lutterworth & Leicestershire areas.

Offering expert independent mortgage advice on:

First Time Buyer Mortgages

Home Mover Mortgages

Remortgages

Buy To Let Mortgages

Limited Company Mortgages

Affordable Housing Mortgages (Shared Ownership)

Self Employed Mortgages


Some of our trusted insurance & protection providers...
 

Aviva Insurance
Vitality Insurance
LV Insurance
Legal & General Insurance
Zurich Insurance
guardian-1821
Scottish Widows Insurance
AIG Insurance
Royal London Insurance
the-exeter

 

A leading 'whole of market' mortgage adviser in Warwickshire, with access to the most competitive products on the market.​

Honest, professional and independent financial advice tailored to suit your personal circumstances.​

 

 

Expert Tailored Advice

 

 

Mortgage & Protection Services

 

 

Whole of Market Advice

 

 

Professional and Friendly Service

 

 

Free Initial Consultation

 


Rated
"Excellent"

 

"Jack was highly recommended to us when we started our house buying journey, and it was the easiest decision we made throughout the whole process. He was extremely helpful, knowledgeable and had a genuine desire to help us with all of our queries and was dedicated to getting us the best deal on the market at the time.

 

We couldn’t ask for a better Mortgage Adviser. Thank you Jack for everything you have done so far. We really appreciate your hard work and would absolutely recommend you to anyone looking to buy a house."

Sam

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