5 Insurance Moves Every UK Business Owner Should Make Before 2026

The next 18 months will define how resilient your business really is. With the UK economy still finding its balance and inflation pressuring both household and company finances, smart business owners are starting to think beyond growth - they’re thinking protection.

Because the truth is simple: it’s not how much you make, it’s how much you keep. And the right insurance strategy is one of the most efficient, tax-smart ways to preserve the wealth you’ve built.

Here are five insurance moves every UK business owner should make before 2026.

1. Protect Your Key People

Every successful business has linchpins, the people who make things happen. If one of them became seriously ill or died, the impact could be catastrophic. Key Person Insurance ensures your company receives a cash injection to maintain steady operations and protect profits during disruptions. In the UK, SMEs report that the absence of key staff is the leading cause of temporary business disruption.

2. Make Sure Ownership Transitions Smoothly

If a director or shareholder dies, their shares don’t automatically pass back to the business; they go to their estate. Shareholder Protection allows surviving shareholders to purchase the deceased's shares from the deceased’s family, maintaining control within the company while ensuring the family receives fair value.

3. Pay for Life Cover the Smart Way

Many directors still pay for personal life insurance out of their net income, and in doing so, they unnecessarily lose money. With a Relevant Life Policy, your business pays the premiums, which can usually be offset against corporation tax. The benefit goes to your family, typically tax-free, through a trust.

4. Safeguard Your Income

If you’re the business’s main revenue driver, your personal income isn’t just your salary; it’s the lifeblood of your company. Executive Income Protection can replace up to 80% of your pre-tax earnings if illness or injury stops you working, allowing your household and business to stay financially stable.

5. Review Your Protection Strategy Annually

Insurance isn’t a “set and forget” exercise. As your business evolves, so should your protection. Conduct a Business Protection Review annually to ensure your cover matches your current turnover, team structure, and growth plans.

Smart entrepreneurs know that protecting value is as important as creating it. Make these moves before 2026, and you’ll be building not just a business, but a legacy.