What Does Business Protection Cover?
Business Protection provides financial security for your company by covering the loss of a key person due to terminal illness, critical illness, or death.
Many businesses know they need to protect premises, stock, equipment, and data, but protecting business owners and key employees is just as crucial to the overall business plan. There are many options for protecting those key individuals within a business, meaning profitability and day-to-day functioning will not be impacted in the event of death or illness.
At Enness, we help you implement a tailored plan to ensure your business remains stable and operational during challenging times, safeguarding your company's future and continuity.
Get in touch today and speak to one of our business protection brokers.
Business Protection FAQs
What is the Tax Position of Business Protection Premiums & Proceeds?
Relevant life premiums are completely tax deductible from corporation tax, and proceeds are paid to beneficiaries via a trust agreement. For any other business protection, the premiums qualify for tax relief if they meet something known as the Anderson Principles, but proceeds are taxable as revenue. However, we are not tax advisors and therefore it is important to seek advice from your accountant or tax advisor on this position.
How Does Key Person Insurance Work?
Key person insurance is there to provide financial resilience to a business in the event a key individual passes away or becomes critically ill. It can be used as a means of replacing the income that the individual normally contributes, as well as costs for finding their replacement. It is usually determined by their contribution to profits or by a multiple of their salary.
Can I use Business Protection for my Family’s Benefit?
If you are taking a PAYE salary from your limited company, relevant life insurance is a brilliant way to provide cover to your family as these policies are written into trust for the benefit of your loved ones. It is a completely tax deductible business expense and if you wish to exit your business, you can take over the policy ownership personally.
Why is Shareholder Protection Necessary?
When a business has two or more shareholders, the death of one of these can have substantial effects on the remaining owners. The shares are usually passed onto family members who need compensating for and the company can then buy the shares back. Shareholder protection will ensure that funds are reserved for this event and the correct shareholder agreement are put in place.
Would you Like a Business Insurance Portfolio Review
We can take a look at your business as whole and offer guidance and advice on what insurances would be most necessary for you and your business. We’ll see the process through for you from start to finish with exemplary service.
How can Enness Help?
At Enness, we specialise in crafting bespoke business protection solutions that align with your company’s unique goals and challenges. Our expert team works closely with you to identify key risks and tailor coverage that ensures your business remains secure if a key person faces illness or passes away. We provide personalised support throughout the process, helping you navigate complexities and ensuring that your business is well-prepared for any unforeseen circumstances.
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