Insuring business owners
22 September 2021
22 September 2021
In this ‘5 things you should read’, Protection Guru have pulled together a number of recent insights covering topics relevant to protecting business owners.
The UK has a large and diverse business landscape, with everything from tech start-ups to traditional retailers. The overwhelming majority of those are small businesses, that is companies employing less than 50 employees. The protection insurance needs of these businesses are as varied as the companies themselves. However, as with personal and family protection provisions, there remains a substantial business protection gap in the UK.
In many smaller businesses the owners and founders themselves are often key to continued success of that business, or they themselves are the business, i.e. they’re the sole employee and running the company as a means of providing a trade or professional service. Without adequate protection cover in place, should the worst happen, they may face dire financial consequences in both their business and personal life. In this ‘5 things you should read’, we pull together a number of recent insights covering topics relevant to protecting business owners.
- Who offers business protection to older employees?
- How can businesses provide an income protection benefit to a director or single employee?
- What are the details of the new LV= Executive Income Protection Plan?
- Which insurers offer legal support to business protection clients?
- How does Royal London’s new and improved business protection calculator stack up?
Advisers can help to prevent business owners store up future problems for themselves by taking out various types of business protection. Unlike personal protection policies, business protection is taken out for the benefit of the business rather than the individual. In this insight we looked at the age criteria that insurers apply to Key Person cover and Shareholder Protection, which are types of business protection policies.
Whilst products such as Key Person and Shareholder Protection insurance are an important means of providing a financial safety net for the company itself, cover for the owner or key employees can be overlooked. For many small businesses Group Income Protection may not be affordable or even viable (if there are too few employees), so an alternative solution is needed. In this insight we looked into Executive Income Protection and how it differs from standard income protection plans.
In July LV= unveiled two new income protection plans, to complement their existing Flexible Protection Plan Income Protection and Personal Sick Pay policies. Both new policies saw LV= expand their offering to reach new markets and cover varied client types. In this insight we looked at their new Executive Income Protection plan.
The legal guidance or advice helplines that are offered by some insurers as part of their business protection propositions can be especially valuable to clients and provide additional value beyond the core pay out. In this insight we examined the legal support providers offer on business protection.
Advisers can play a crucial role in protecting businesses, with access to the right learning materials, technical guidance and tools to help facilitate business protection conversations with their clients. In this insight we took a closer look at Royal London’s newly improved Business Protection Calculator.
Watch out for future “Everything you need to know” pieces where each week we will cover a different topic and provide you with the information you need to know to discuss the topics with your clients.
This document is believed to be accurate but is not intended as a basis of knowledge upon which advice can be given. Neither the author (personal or corporate), the CII group, local institute or Society, or any of the officers or employees of those organisations accept any responsibility for any loss occasioned to any person acting or refraining from action as a result of the data or opinions included in this material. Opinions expressed are those of the author or authors and not necessarily those of the CII group, local institutes, or Societies.