Two business people sitting at a cafe working on a new project using a laptop. Young businesswoman taking notes and a businessman working on a laptop computer to discuss business protection insurance

Business Protection Insurance

Introducing Business Protection Insurance

Running a business can be a hugely rewarding but challenging experience, and unforeseen events can cause disruption, or even put the stability of a business at risk.

Whilst no one can predict the future, Business Protection is there to help your company continue to thrive in the unfortunate event of a key employee, business owner or director suddenly becoming critically ill or passing away.

Hard-working, creative and valued employees are the most powerful assets available to any business. That’s why it makes sense to protect against the loss of certain key members of staff, bolstering your company against the financial and operational fall-out of such an event. Forsythe Financial Planning advise on a range of life insurance plans to cover employees, directors, partners, as well as providing bespoke group risk schemes.

What is Business Protection?

Certainty and stability allow a business to flourish, and with Business Protection, you can put provisions in place to ensure your company is not compromised in the event of someone suffering from terminal illness, critical illness, or death.

Why is Business Protection important?

Every business wants to have its key people ready and available to work. But there is no shortage of surprises that can disrupt ‘business as usual’ – from serious illness to loss of life.

Explore our guides to the various types of business protection, plus more information on the policies we offer:

Key Person Insurance

Safeguard your business with Key Person Insurance

As an employer, you know that running a great business means having a team of great people, but there may be one person who stands out as being a key player in the company’s success. This person’s knowledge, work, or overall contribution is considered uniquely valuable to the company.

How would your business cope if that person were to pass away, or become seriously ill? Key Person Insurance helps to protect your business, should such unfortunate events occur.

How does it work?

You can take out Key Person Insurance at any stage of your company’s lifetime. You will pay a premium on a regular basis, based on the cover that is required. If the unexpected happens and this person dies, or becomes seriously ill, the policy will provide a lump sum to compensate for this event.

This can be used to offset any financial losses incurred. It can also be used to contribute to bank loans where the key employee gave a personal guarantee or to pay off loans made to the company by the key employees.

Who is Key Person Insurance for?

This kind of life insurance is taken out by a company of any size, where there is a need to protect against the loss of an extremely valued employee of high financial or strategic importance to the business.

Why take out Key Person Insurance?

Availing of this kind of life insurance can give additional security to your business, as it safeguards against the loss of a key employee. As an employer, it can bring you peace of mind in the knowledge that you are protected from the financial fall-out due to the death or incapacity of a very important member of your staff.

Co-director Insurance

Protect your business with Co-director Insurance

A strong board of directors forms the strategic and financial lifeblood of any company. The sudden loss of a director through death, or ill health can potentially have very negative consequences on a business. Co-director Insurance will allow the company to buy a director’s shares from their next of kin if these unfortunate events occur.

This will bring stability to the business, as the remaining directors gain full control of the company. And it could be a good option for the family of the deceased, who may not have the desire or expertise to take on this role.

How does it work?

Co-director Insurance can be taken out at any stage of your company’s lifetime. You will pay a premium on a regular basis, based on the cover that is required and the value of the shares of the director.

If the unexpected happens and this director dies, the policy will provide a lump sum to compensate for this event. This can be used to buy the deceased director’s shares from his/her next of kin.

Who is Co-director Insurance for?

Co-director Insurance can be taken out by the directors of a company of any size. It will provide funds to allow for the purchase of the shares from next-of-kin, in the event of the death of one of the directors.

Why take out Co-director Insurance?

The death of a director may bring distress and grief to any organisation. As well as that, it could jeopardize the security and direction of the company. If the deceased director was a majority stakeholder, the remaining directors may lose control of the company if next-of-kin were to take over.

The deceased’s family may be unfamiliar with the business and may have cash-flow problems after losing his/her income. Co-Director Insurance allows the directors to buy the shares from the family, which could be the best option for all concerned.

Partnership Insurance

Many business partnerships are based on years of collaboration, mutual support, and friendship. The death of a partner can be an extremely distressing and traumatic experience for those involved. As well as that, this unfortunate event might jeopardize the financial security and stability of the partnership.

The remaining partners may be obliged to pay a capital sum to compensate the deceased estate for his/her stake in the partnership. Partnership Insurance can release the funds to make this possible, and allow the partnership to continue without the involvement of next of kin.

How does it work?

Before taking our Partnership Insurance Policy, the assistance of legal and taxation advisors needs to be sought. The premium that is paid on a regular basis during the term of the policy will be dependent on a number of different factors, such as the value of the partnership, etc.

If the unexpected happens and a partner dies, the policy will provide a lump sum to compensate for this event.

Who is Partnership Insurance for?

Partnership Insurance can be taken out by members of a business partnership of any kind. In the event of the death of one of the partners, it will provide funds to allow for the purchase of the deceased’s share of the partnership from next-of-kin.

Why take out Partnership Insurance?

The death of a partner may bring financial and legal problems for a business partnership. The remaining partners could be legally obliged to pay an immediate capital sum to the deceased’s estate. This money may need to cover a range of different costs such as undrawn profits, any share of partnership fixed assets, the balance of the deceased’s capital.

Corporate Co-director Insurance

The directors of a company are often the major shareholders and key decision-makers within a firm. A successful business depends on the cooperation and experience of its directors. If one of these directors becomes seriously ill or dies it can create great difficulty for surviving directors and the deceased’s successor(s) alike.

Corporate Co-Director Insurance gives the company the security that there will be funds available to buy back shares should this happen.

How does it work?

There are both legislative and taxation issues that need to be examined to ensure that a Corporate Co-Director Insurance arrangement is appropriate. So, any company seeking to acquire this kind of business protection will require the assistance of legal and taxation advisors.

The premium that is paid on a regular basis during the terms of the policy will be dependent on a number of different factors, such as the value of the shares that the director holds, the company’s turnover etc.

If the unexpected happens and this director dies, the policy will provide a lump sum to compensate for this event.

Who is Corporate Co-director Insurance for?

A company of any size can take out Corporate Co-director Insurance. It will provide funds to allow for the purchase of the shares from next-of-kin, in the event of the death of one of the directors.

Why take out Corporate Co-director insurance?

The death of a director may bring distress and grief to any organisation. As well as that, it could jeopardize the security and direction of the company. If the deceased director was a majority stakeholder, the company may lose control of its affairs if next-of-kin were to take over.

The deceased’s family may be unfamiliar with the business and may have cash-flow problems after losing his/her income. Co-Director Insurance allows the company to buy the shares from the family, which could be the best option for all concerned.

Qualified Financial Advice from a Trusted Advisor

Get in touch to see if we can help

If you’d like to discuss which type of business protection might suit your business, and for all other enquiries about business protection, email ffp@live.ie or contact Forsythe Financial Planning on 08087 2506365 (9am to 5pm Monday to Friday).