Business protection insurance

Protect your business should the worst happen. At Broadstone, we are committed to helping companies safeguard their success by insuring their key people.

Regardless of the size of your business, your people will always be one of your most important assets.

What is business protection?

Business protection can be a broad brush for the following needs:

  • Key person insurance – safeguards your business against the financial effects of the loss of a key person.
  • Business loan protection – helps pay any outstanding loans or finance including overdrafts, personal guarantees, directors’ loans.
  • Share protection – provides the funds for partners, directors and members to buy a deceased/critically ill person’s share of the business, ensuring their family receives the full value of their share.

As an SME, one or two people can have a massive impact on the success of your business so you need to consider what would happen if you were to lose one of your biggest assets, your key people. Our role is to make cost-effective business protection obtainable, so should the worst happen your business can not only survive a crisis but carry on with all of the plans you have made for it.

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Why take out business protection?

Plan for the unexpected – no one wants to think about death or serious illness, but if this was to happen to you or your key people your business may not be able to survive the financial fallout. You insure against fire/theft, why not protect against the loss of your key people?

Research from insurer Legal & General* found that 52% of the UK’s small businesses believe they would cease trading in less than a year should a key employee die or be diagnosed with a critical illness and be unable to work.

Stay in control – you and your business partners have spent a great deal of time and effort building up your business. Having the funds available at a time of crisis can ensure you remain in the driving seat with funds used to pay off debts/creditors, recruit a replacement or ensure shares can be purchased from an outgoing shareholder or their family.

Give your business partners and family peace of mind – should the worst happen you will want to guarantee your family receives the value for your share in the business that you have worked so hard to secure and that this is paid promptly. At the same time, you will want to ensure that honoring this does not put the business at risk.

*Legal & General State of the Nation Report

How does it work?

Regardless of the size or type of business you operate, as an independent and whole of market broker, we can help you get the specific protection you need and for the most competitive price.

We take the time to understand the specifics of your business and the people you want to cover and then obtain a range of quotes to help you make an informed decision.

Our simple three-step process provides you with a policy, specifically designed for your business.

Step 1: answer some questions

Provide us with some basic information about your business and the protection you are interested in.

Step 1: answer some questions

Step 2: speak to a member of our team

To get your bespoke quote, we will need to find out specific information about your business and the people you wish to cover. We will use this to source the most appropriate and competitively priced quotes.

Step 2: speak to a member of our team

Step 3: review and accept your quote

Once you’re happy with the quote provided, our expert team will guide and support you through the full application process – working with you to ensure the protection you need will reach the right people at the right time for the best premium possible.

Step 3: review and accept your quote

How much does it cost?

This will depend on who and what you want to cover. We will provide a tailored quote for each person you want to protect based on their age, smoker status, health, the amount of cover you need, how long you need it for and what benefits you want to include, for example, death/critical illness.

The cost of cover can be much less than you think. Our example case study prices opposite show how little it could cost you to obtain business protection cover for your business.

Example 1: Key person cover for an IT specialist aged 26 within a tech company whose loss would trigger a significant loss of profits.

A lump sum payable to the company of £500,000 on death or earlier critical illness with a five-year term – £60.00 per month.

Example 2: Shareholder protection for Directors aged 40 and 45 who want to protect their joint shareholding of an engineering business with a total value of £200,000.

A lump sum of £100,000 payable on death before their retirement age – £11.50 and £12.50 per month. – cover is written under a business trust and will be payable so they can buy each other out.

Example 3: a new start-up company where the investor requires key person cover on the lives of the founders aged 35 and 42 as a condition to providing finance.

£1,000,000 payable to the company on death within a three-year term £25.50 and £42.00 per month respectively.

Example 4: Partnership protection for a small legal practice where three Partners aged 35, 40 and 50 want to protect the value held within their respective capital accounts.

£125,000 payable on death or critical illness with a term to retirement age £55.00 and £71.00 per month.

Examples above are based on monthly paid premium, non-smoker rates, retirement age is State Pension Age.

Please note that the figures above are examples for illustrative purposes. The actual premium would depend on the benefits selected, gender, smoker status, and medical history of the individual and the term of the policy.

Ready for a quote?

Click the button below to start the process.