Running your own business can be all-consuming, leaving little time for much of anything else. So it’s no surprise that many business owners have not found the time to think about business protection and why they might need it.
A recent report by the Chamber of Commerce showed that 98% of businesses had at least one key individual in their business (someone whose death or serious illness would impact on company profits). And just less than half expected their business to fold within a year. So it’s a real surprise to find that more than 90% have no cover in place.
As well as being unable to cope with the death of a key person, very few businesses will have the cash available to buy a shareholder’s shares or a partner or member’s interest if they die. Without this, the interest will automatically pass to the deceased’s family and may cause disruption to the business. Others will be sole traders who need protection in order to keep the business afloat when they are ill.
It pays to plan ahead
Key person, shareholder, partnership, membership and sole trader protection are all forms of business protection that our advisers can recommend to ensure your needs are met.
It is our business to know:
1. The policy set-ups that different business formats need
2. How premiums and benefits are taxed
3. Trusts and Inheritance Tax rules
4. How business succession strategies work
We work in close conjunction with your existing Accountant and Solicitor or can recommend professional contacts to you and your business. Working with other professions advisers in this way ensures that there is no crossover of provision, whether legal or financial, and that action is taken swiftly in the event of a claim.
*Department for Business Innovation and Skills, October 2009