The Importance of Business Protection
The Importance of Business Protection
Your business is likely to be your biggest expense in terms of time, and probably what you value the most after close family.
Business Protection, in its various forms, can be an excellent way to ensure your business doesn’t feel the effects of a Key Person falling ill or perhaps worse. Let alone other external factors, particularly ones we’ve all felt, in various ways, over the past 18 months.
According to the Office for National Statistics, there were 2.72m VAT & PAYE registered UK businesses in March 2019.
That is a huge amount of risk on that person, if anything were to happen. But putting personal protection to one side, what would happen to the business if something were to happen to that
individual?
Business protection is a rarely high on the agenda, but it needs to be. It can lead to awkward discussions between shareholders for SMEs, but it removes any grey areas in regards to what could
happen to the business and the value within that.
Every business has key people. With Key Person Insurance, if something happens to the individual and they are covered by KPI, it will allow the business to possibly;
- Have funds to replace key individuals
- Protect corporate debt
- Buy-out a shareholder, or their estate (allowing for their dependents to receive a fair value for their share in the business on critical illness or death)
- Provide employee benefits
An additional point is that business protection policies provide higher value than other types of protection which could mean additional revenue or your business.
If you haven’t got any business protection in place, please do get in touch with Piers here and he’d be happy to liaise with you and one of our Wealth Managers here to discuss your needs in more detail.
Coronation Wealth Management LLP is an Appointed Representative of and represents only St. James's Place plc (which is authorised and regulated by the Financial Conduct Authority) for the purpose of advising solely on the Group's wealth management products and services.
