Business Protection

What is Business Protection?

Business protection is insurance to help protect businesses from the financial consequences of shareholders, partners, sole traders and key employees being diagnosed with a critical illness or dying.

Types of Business Protection: 

Why should you have business protection? 

Here are some questions to apply to your business:

  • What would happen to your business if you lost a key worker to critical illness or death?
  • How could the business continue without a key person whose reputation, personality or vision is critical to its success?
  • Would the business lose existing contracts, good will or contacts?
  • What would be the vulnerability to competitors?
  • Would it still be possible to raise finance for new ventures or expansion?
  • Could existing loans be repaid?
  • Who would have control and more importantly, who should have control?
  • What will the impact of lost skills be? On profits? On creditors? On future prospects?
  • When was the last time any existing business protection policies were reviewed?

How we can help you get the right protection

  • Understanding your business
  • Identifying risks
  • Using the right products
  • Outlining tax treatments

Why use Francis Clark Financial Planning?

Our financial planning advisers have over 250 years’ worth of combined experience in advising our business and private clients with clear, expert and relevant independent financial planning advice. We help them to create, keep and grow the wealth they have earned. Our chartered financial advisers can advise businesses on the most suitable protection insurance packages, individual and workplace pensions, and employee benefits packages to attract, reward and retain employees. Since we are independent, we can provide advice on the whole market, rather than being tied to a small number of providers.

Book Consultation

To book your initial consultation (no cost or obligation), please fill in the form below with your details and one of our financial planning experts will be in touch.

“FC Financial Planning are extremely keen to make sure their customers are both protected and can take advantage of the markets, even in volatile times.”
Keith & Linda Caddy, Cornwall
View Case Study

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Business Protection FAQs

  • Can I claim business protection insurance as a business expense?

    For shareholder and loan protection, tax relief is generally not available in respect of the payment of premiums, however with the correct implementation and appropriate use of trusts no taxation would generally be payable on the proceeds of the policy.

    For keyperson protection, an assessment must be made to determine whether premiums can be allowed as a trading expense. If premiums are allowed as trading expense it is likely that policy proceeds would be taxable. If premiums are not allowed as a trading expense, policy proceeds are not generally taxable, however the business must confirm the tax position with their own inspector of taxes.

    All references to taxation are based on our understanding of current taxation law and practice and may be affected by future changes in legislation and the individual circumstances of the policy holder. It is important to recognise each business will have its own unique set of circumstances which will change over time. Advice should be sought regularly to determine tax treatment and suitability of the insurance.

  • What is a business protection agreement?

    Various legal agreements and trust documents need to be in place depending on the business’s setup, situation and requirements.

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