Business Protection

Your business depends on its people. We build bespoke protection packages for business owners and partners — including key person insurance, shareholder protection, and tax-efficient relevant life policies.

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Types of business protection

Key Person Insurance

Protects your business against the financial impact of losing a key individual — whether through death or critical illness. The policy pays the business directly, providing funds to cover lost revenue, recruit a replacement, or repay debts.

  • - Paid to the business
  • - Premium often tax-deductible
  • - Covers death and/or critical illness

Shareholder Protection

Ensures that if a business partner or shareholder dies, the surviving owners can purchase the deceased's shares. This prevents shares from passing to family members and maintains control of the business for the remaining shareholders.

  • - Funded by cross-option agreements
  • - Provides a clean exit for the estate
  • - Protects remaining shareholders

Relevant Life Insurance

A tax-efficient death-in-service benefit provided by the company. The premiums are an allowable business expense (reducing corporation tax), there's no benefit-in-kind for the employee, and the payout is free from inheritance tax.

  • - Company pays the premium
  • - No BIK charge for the employee
  • - Payout free from IHT

Tax-efficient protection through your company

Relevant life insurance is one of the most tax-efficient ways to provide life cover for company directors and employees. Here's how it compares to a personal policy:

Personal life insurance

  • - Paid from your after-tax income
  • - Not a business expense
  • - No corporation tax benefit
  • - Payout may be subject to IHT (if not in trust)

Relevant life insurance

  • - Company pays from pre-tax profits
  • - Allowable business expense
  • - Corporation tax saving on premiums
  • - Payout free from IHT (written in trust)

Who needs business protection?

  • Business partnerships — shareholder/partnership protection ensures business continuity
  • Companies with key employees — key person cover protects against the loss of vital people
  • Company directors — relevant life insurance provides tax-efficient death-in-service cover
  • Businesses with loans — protection to repay business debts if a key individual dies
  • Employers wanting to attract talent — death-in-service benefits are a valuable employee benefit

Frequently asked questions

What is key person insurance?
Key person insurance protects your business against the financial impact of losing a critical employee or director. If the insured person dies or is diagnosed with a critical illness, the policy pays a lump sum to the business. This can cover lost profits, recruitment costs, and the time needed to find a replacement.
What is shareholder protection?
Shareholder protection ensures that if a business owner dies, the surviving shareholders can buy the deceased's shares from their estate. This prevents shares passing to someone who may not be suitable — such as a family member who has no involvement in the business. Cross-option agreements are used alongside the insurance to create a binding arrangement.
What is relevant life insurance?
Relevant life insurance is a tax-efficient way for a company to provide death-in-service benefits to individual employees or directors. The company pays the premium (which is an allowable business expense), the employee has no benefit-in-kind charge, and the payout is free of inheritance tax. It's particularly valuable for directors and high earners.
Can my company pay for business protection?
In most cases, yes. Key person premiums are typically an allowable business expense. Shareholder protection is usually paid by the individual shareholders but structured through cross-option agreements. Relevant life insurance is always paid by the company as it's designed to be a business expense.
Do I need business protection if I'm a sole trader?
The focus shifts slightly for sole traders. Key person and shareholder protection are less relevant, but you should consider income protection (to replace your income if you can't work) and life insurance (to clear business debts and provide for your family). We'll assess your specific situation.

Protect your business

Book a consultation and we'll build a protection package tailored to your business structure.

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