Is your business at risk?
The death or serious illness of a business owner or key personnel can have a severe impact on profits. For example, the death of a shareholder can leave the surviving business owners with the problem of finding sufficient capital to buy the deceased’s interest from his/her family.
We can support you in a number of areas including:
- Shareholder protection – the death of a shareholder can have a huge impact on a business; unless they can buy the deceased’s shares, the remaining shareholders could end up being in business with people who have little or no interest in the company or the skills needed to make the business a success. In the case of a partnership, the partnership may have to be dissolved.
- Key person cover – individual employees are often a company’s biggest asset and losing a key person can be very damaging to the business. This could result in a loss of profits, reduced sales and the cost to the business of recruitment and training a replacement.
- Business loan protection – have you considered how the business would repay its borrowing in the event of the death or serious illness of a key individual? If adequate cover is not provided, the business could be in serious financial difficulty.
Straightforward protection policies are a sensible and relatively inexpensive solution but professional advice is essential to ensure that these are arranged correctly, so that capital is placed in the right hands at the right time and without any unnecessary tax liability arising.
Our Business Protection Calculator will help you to determine the value of key employees, taking into account the contributions they make to profits and estimated replacement costs.