Business insurance and your employees

When you see business insurance mentioned, you may automatically think of buildings, landlords, commercial or liability insurance. As a personal protection insurance broker, when we speak about business insurance (business protection), we mean protecting your employees, directors and shareholders.

Whether you are interested in providing a benefit to your staff, protecting your business or preparing for unexpected changes, there is a product for you.

Who needs business protection?

You could be a micro business, small business or medium to large firm. Plus, you may have anything from 2 - 1000’s of employees, shareholders or directors.

If your business cares for its employees or is concerned about the loss of income to the company, then one form of business insurance will suit your needs.

Example:

You are a small business of 5-10 employees, 2 directors and shareholders. One of you brings in the majority of the new business, they always have the next ‘sale’ lined up. You rely on them each month to keep the business coming and provide work for most of the team. Then, with no warning, that person passes away. Obviously, the team is devastated and it will last for a while. But when you think about their position and what happens to their family and within the company moving forward, you start to realise there are other considerations.

Your options could have been -

Relevant Life - You pay their life insurance and their family get the payout
Keyperson - You pay the policy and the business gets a payout to recruit, employ and train a replacement
Shareholder - If they were one, shares switch easily between the board preventing distress

Which business insurance do I need?

There are a number of personal insurance products for business protection that we can provide:

Relevant Life

Similar to a life insurance policy, the premiums are paid by the company but the lump sum pays out to the family of the employee, a nominated charity or a financial dependant. The amount that can be paid out is usually between 3 or 10 times the employee’s salary. A great employee benefit and can be a significant tax saving for a business.

Keyperson (Keyman) Insurance

A policy that can cover the business for any potential lost profits, loan repayments or recruitment costs of a new staff member or director who is crucial to the company. It’s a business expense, meaning the business pays for the premiums and they will benefit from a payout if there was a claim.

Businesses generally will choose their key members of staff that bring in a large amount of revenue into the business so this could be their top salesperson, a director, etc. When working out how much cover the business may need for an employee, generally others insure their employees for 2x the gross profit they bring in OR 5x the net profit they generate.

Shareholder Insurance

A policy to protect the business and allow other shareholders to buy shares from each other, should a shareholder pass away or be unable to work due to death, serious illness or injury. It can create a financial safety net for the business and allow for a smooth transfer process in the unfortunate event of a shareholder dying.

‘Business’ Insurance

If you do wish to protect your business for events out of your control, like floods, fire, theft, and accidents with employees or the public, we would appreciate the opportunity to introduce you to our experienced partner. A friend of the business and independent insurance broker who is highly recommended.

How can an Insurance Broker help?

When you are ready to discuss your options and are looking at investing in an insurance policy for your business and staff, an experienced insurance broker can walk you through the process. They will get to know your business better and chat through what may be best for you as the owner, the business itself and your staff.

Get in Touch

Want to get a free quote, feel free to contact us through our enquiry form, email (enquiries@covermybubble.co.uk) or phone us on 01254 460880