What is business protection and why is it important?

Creating a business from scratch and turning it into a success is one of the most rewarding achievements a person can make. However, running a business doesn't come without its ups and downs, and the importance of life insurance for your business is often overlooked.

A life insurance policy can help to financially safeguard your business if the worst were to happen. In this blog, we will have a look at what business protection can do for your business, a brief overview of the most common types of protection, and why it is essential to consider a life insurance policy for your business.

What is business protection?

Securing a life insurance policy for your business can give you financial peace of mind in knowing that if the worst were to happen you would still be able to continue as close to ‘business as usual’ as possible.

Depending on the type of policy you have in place, business protection can protect your company if the owner’s and/or employee’s were to be affected by death or critical illness. Having the right protection in place can ensure that your business would be able to survive a potentially detrimental time.

What types of business protection can I get?

When you hear the words 'business protection’, the likelihood is it will be in reference to one of the following types of policies:

Key person - This policy protects the key individuals in your business. Consider who your business would not survive without if the worst were to happen to them. This policy provides a cash injection to the business during a tough time.

Relevant life cover - This type of business protection offers a death-in-service type benefit for your employee’s and the lump sum is typically a multiple of the individual employee’s salary. Thus, if any employee covered under this benefit were to pass away during the time they work for the business, then this policy would provide financial security for their loved ones.

Group life - This type of protection covers your employees if they were to pass away whilst in employment by the company. With group life protection, it is worth noting that you do not have to be at work or engaged in a work activity to be able to claim on this policy.

Shareholder protection - Having shareholder protection in place means that if the worst were to happen to one of the shareholders within the company, then the remaining shareholders have the funds to purchase the deceased shares in order to keep them within the company. This policy ensures that the surviving shareholders stay in control and can reduce any potential disruptions to the business.

At Caspian Insurance, our business protection specialists are equipped with years of industry knowledge and experience in finding the best protection for all sorts of businesses. By choosing Caspian, we can search through the UK’s leading insurers to find the best policy suited to your company, employee’s and affordability. Let us do the hard work for you!

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