Business Protection

Tax efficient strategies to ensure that Directors and employees are covered

Helping You Protect Your Business, People and Future

Running a business involves responsibility — to your clients, employees, fellow directors, shareholders and family. While many businesses insure their premises, equipment and vehicles, the financial impact of losing a key person, shareholder or business owner is often overlooked.

At Richard Bamber & Company, we provide independent business protection advice to help companies, directors and business owners put appropriate financial safeguards in place.

Whether you want to protect your business against the loss of a key employee, ensure shareholders can retain control, cover business loans or provide tax-efficient life cover for directors, we can help you understand your options and create a suitable protection strategy.

Our aim is simple: to help your business remain financially secure if the unexpected happens.

What Is Business Protection?

Business protection is a broad term for insurance arrangements designed to protect a business financially if a key person, director, shareholder, partner or business owner dies or becomes seriously ill.

A business protection plan may include:

Key person insurance
Shareholder protection
Partnership protection
Business loan protection
Relevant life cover
Executive income protection
Critical illness cover for business owners
Protection policy reviews

The right protection will depend on your business structure, ownership, borrowing, profitability, key individuals and long-term objectives.

Frequently Asked Questions

Business protection refers to insurance arrangements designed to protect a business financially if a key person, director, shareholder, partner or business owner dies or becomes seriously ill.

You may need business protection if your company relies on key individuals, has shareholders, business loans, director loan accounts or would suffer financially if an important person died or became seriously ill.

Key person insurance is designed to provide funds to a business if an important employee, director or business owner dies or suffers a serious illness during the policy term.

Shareholder protection helps remaining shareholders buy a deceased or seriously ill shareholder’s shares, helping protect business continuity and ensuring the affected shareholder or their family receives value for their shareholding.

This depends on the company’s articles, shareholder agreement, will and any protection arrangements in place. Without planning, shares may pass to beneficiaries who are not involved in the business.

Yes. Business loan protection can provide funds to help repay business borrowing if a key person dies or suffers a serious illness.

Relevant life cover is a life insurance policy usually paid for by a company to provide a lump sum to an employee or director’s beneficiaries if they die during the policy term.

Relevant life cover can be tax-efficient in the right circumstances, but the treatment depends on the policy structure, company position and current tax rules. Advice is important.

Executive income protection is designed to help a business continue paying an employee or director if they are unable to work due to illness or injury.

Yes, in some cases a company can pay for life insurance, such as relevant life cover or certain business protection policies. The suitability and tax treatment will depend on the purpose and structure of the policy.

The amount of cover depends on the risk being protected. This may include profit contribution, business value, loan amounts, replacement costs or shareholder value.

Yes. Business value, profits, borrowing, ownership and key people can all change over time. Regular reviews help ensure your protection remains suitable.

A shareholder agreement can be important where there is more than one shareholder. We do not provide legal advice, but we can work alongside your solicitor where required.

Protect Your Business Matters Most

A business can take years to build, but an unexpected event can create immediate financial pressure.

The right protection can help safeguard your company, your shareholders, your employees and your family.

Contact Richard Bamber & Company today to arrange an initial consultation with one of our experienced advisers.

Richard Bamber & Company | Independent Finance Services

Location

Richard Bamber & Company
The Old Halsall Arms
2 Summerwood Lane
Halsall
Lancashire
L39 8RJ

Contact

01704 842 142 (Wealth)
01704 841 411 (Mortgages)
01704 842 144 (Insurance)
wealth@richardbamber.co.uk