Business Protection Insurance

There are several areas business owners can protect themselves, their business(s) and in turn their family:

• Life Insurance – Death in Service
• Company or Group Life Insurance
• Key Man Life insurance or critical illness protection
• Executive income protection
• Shareholder Protection

These agreements can be as simple as insuring in the event of the shareholder/owner/director were to be ill or pass away. A large benefit of these solutions is it can be created in a way so the director would NOT pay but the limited company would (with zero impact of P11D). The protection could be then configured to always pay family like a death in service agreement or pay the company. These purchases can be offset against Corporation Tax just like any asset purchase.

Group insurance often used as a employee benefit to working with the company. This could include life insurance, critical illness, or income protection again these purchases can be offset against Corporation Tax just like any asset purchase. Many companies use these to retain staff, reduce training and recruitment costs whilst reducing their Corporation tax. 

Some organisations have shareholder agreements to protect all the owners of the business and retain control within in the business. So in the event of a director passing all the share value of the business would be paid to their family and the surviving director(s) would not have to find the monies for the family and they inherit / buy the share capital.