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Business has changed over the years - that’s why we’re refreshing business protection to fit today’s small and medium sized enterprises.

Free business legal advice and tax guidance for your business protection clients

Easy-to-use tools and calculators for you and clients

Business Protection

Introducing cover by business type

To successfully introduce Business Protection, it’s important to understand the setup of the client’s business, who the owners are and the risks they face. This will help build your credibility and justify the need for Business Protection.

Share/Partnership Protection (safeguards business ownership)

This protects the ownership of a business if a partner or shareholder dies (or is diagnosed with a critical illness). Taking out Share or Partnership Protection creates a guaranteed marketplace for the dead owner's shares in the company.

It ensures:

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The deceased business owner’s beneficiaries (usually their family) receives fair (and pre-agreed) value of the shares.

The surviving owners have the money available to purchase those shares.

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If you get the opportunity, describe the alternative and remind clients:

  • If the family decided to sell the shares on the open market, any buyer (including a competitor) would be looking for the cheapest possible price - not a fair, pre-agreed market value.
  • This would also be the case if the share was sold to a surviving business owner.

During a period of mourning, the last thing anyone wants to do is scrabble around trying to sell shares in a private business (which can’t be traded on the FTSE). Business owners might assume their children (or spouse) will want to inherit their business, when in reality, they don’t. Even if they did, personal differences could still impact the ongoing success of the business.

In reality, very few businesses become 'multi-generational', so speak to potential Business Protection clients about the practicalities of passing the firm onto their children.

Key Person cover (protects profit and pays off business debt)

95% of UK businesses employ less than 10 people, so are inevitably built around the skills of one or two key people. What happens to the business if one of those key people dies (or suffers a critical illness)?

Key Person cover can provide businesses with the breathing space needed to replace the profit the key person would have generated. It can also provide funds to clear any lending or debts the business might have (if the loss of a key person impacts the ability to repay the loan).

When talking about business debt, don't forget to discuss:

  • Director loan accounts (which need to be repaid on death of the director).
  • Any short-term, high interest lending that the business might be using (like an overdraft).

Additional benefits of Business Protection

Apart from the obvious reasons for having the correct Business Protection in place, you can also discuss a number of additional benefits:

Stakeholder management

Adequate Business Protection promotes the firm’s long-term growth and profitability strategy, and gives confidence to a number of stakeholders:

  • Partners or shareholders (as well as their families) - who want to protect their interests.
  • Staff feel confident their jobs are safe – now and in the future.
  • Customers get their purchases on time, and to the standard agreed.
  • Investors are reassured their investment is safe and will deliver a healthy return.

Additionally, Business Protection helps warn off competitors looking to win over customers if the business is impacted by the loss of an owner or key person.

Funding

Adequate cover is a great indication of the owner’s understanding of risk and general business responsibility. This is very powerful to customers, banks and investors.

Marketing and sales

Clients can reference Business Protection to prospective customers, demonstrating all eventualities are covered. This could help them win business and demonstrates their professionalism.

Succession planning

The eventual sale of a business is an essential part of retirement planning, so the loss of a key person can seriously damage its value – which can be reduced further if the business has to take on debt to survive. Talking to clients about their long-term intentions provides a natural stepping stone to introducing Business Protection - positioning Key Person cover in this way not only protects the business, but also the owner's retirement.

0800 032 3962

TextDirect: first dial 18001


Business Protection Specialist Team

Option 1 – New and current applications

Option 2 – Underwriting

Option 3 - New agency set up and login queries

Option 4 - Business Protection sales team and quotes

Options 1-3, 8.30am - 6.30pm Mon - Fri

Option 4, 9:00am - 5:00pm Mon - Fri

We may record and/or monitor calls for training and audit purposes.

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Business Protection options

Find out more about the type of businesses we cover and the policies available.

More about our Business Protection options

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Calculators and tools

See all our business protection calculators available to simplify your client conversations.

Our Business Protection calculators

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LV= Business Care

Our Business Protection includes valuable telephone support for your clients and their employees.

LV= Business Care

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Business Protection support team

Our team will make sure that all your Business Protection applications are dealt with quickly and efficiently.

More about our business support team

Connect with us

About protection

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FOR UK FINANCIAL ADVISERS ONLY
LV=, County Gates, Bournemouth, BH1 2NF, UK