The success of almost all businesses is dependent upon a handful of key individuals the loss of one of these key people could be the beginning of the end.

Business protection can help a business continue to trade should the business owner or one of its key people die or become terminally or critically ill. It could help ensure that key individuals are replaced, that corporate debt is protected and the surviving shareholders are able to purchase the shares from the deceased director’s estate.

Arranging business protection doesn’t have to be complicated but as with all things there are potential difficulties if it is not set up correctly from the beginning. CopperHouse Financial LLP can help business owners identify and implement the most appropriate strategies for their needs.

Types of business protection

There are four main types of business protection:

Business Protection Audit

In the current economic climate, we recognise that business owners spend more time than ever on running their businesses. Usually, the aim of a business owner is to achieve financial independence as soon as possible. However, one issue that they often overlook is that of protection. For more information about business protection please contact us.

Corporate Planning

Key Person Protection (Profit Protection)

Key Person Protection (Profit Protection) helps safeguard a business against the financial impact of the death of, terminal illness, or critical illness of a key person.

The loss of a key person may result in reduced sales, loss of sales and profits, wasted time, recruitment costs, and the disruption of development plans or increased workloads for the remaining staff.

Key Person Protection (Profit Protection) is life assurance or life assurance and critical illness cover (if chosen) written on the life of the key person but owned by the business so that any money due becomes payable to the business. The business pays the premiums.

Key Person Protection could provide your business with the cash injection it may need to help recover from this loss of profits, covering costs such as the recruitment and training of a replacement. Read More

Director Share Protection

Without initial planning and consideration if a director or business partner dies the surviving directors could run the risk of the shares passing to someone with no interest in the company.

Shareholder protection is designed to provide a lump sum to the remaining shareholders, or the company, to enable them to purchase the shares from the deceased partner. In most companies shares will often pass to the husband or wife of the deceased who may have no interest in the business or the knowledge to take over the roll.

With shareholder protection in place, the shareholding can be purchased giving the surviving spouse or partner the monetary value of their holding. In this way the remaining shareholders can retain control and the deceased families receive financial compensation. Read More

Business Loan Protection

The loss of the person who has guaranteed a loan can be particularly serious for a business.

If an overdraft, loan or commercial mortgage is unable to be paid, it has serious implications for the business.

Business Loan Protection can ensure that the business can repay an outstanding overdraft, loan or commercial mortgage should the guarantor die or become terminally or critically ill. The funds could also be used to clear the business overdraft or settle a director’s loan account. Read More

Relevant Life Policy

A relevant life policy is a new type of tax efficient life insurance for directors and employees.  The policy can be paid by their Limited company with the beneficiary being a named person, usually a partner, child or family member.

A relevant life policy is designed to provide cost effective life cover for:

  • Higher earning Directors and employees who do not want their death-in-service benefits to form part of their lifetime allowance, and who have substantial pension funds.
  • Small businesses who want to provide a level of company-paid life cover whether for an employee or director but do not have enough eligible employees to qualify for a group death in service scheme.

Read More

Contact Us

If you would like to discuss any of the above in greater detail please contact us to arrange a free, no obligation initial meeting or to discuss your arrangements further over the phone.