Financial Protection for Businesses

Many businesses will set up insurance policies to cover buildings, liabilities, etc. However, business owners often forget to consider the value of key people within their businesses and fail to provide adequate financial cover against death or illness.

Keyman Insurance - An employer may take out a keyman insurance policy on the life or health of any employee whose knowledge, work, or overall contribution is considered uniquely valuable to the company. The employer does this to offset the costs (such as hiring temporary help or recruiting a successor) and losses (such as a decreased ability to transact business until successors are trained) which the employer is likely to suffer in the event of the loss of a key person.

Share Protection - helps the surviving shareholders or partners keep control of the business if a major shareholder or partner dies or is diagnosed with a critical illness.

If a business doesn’t have this kind of protection in place, losing a major shareholder or partner can cause serious problems. A shareholder’s family could end up with a share of the business, for instance. And in the case of a partnership, the partnership will be automatically dissolved unless an agreement exists to the contrary.

DTE Financial Planning is the trading name of DTE Risk & Financial Management Limited (registered in England number 01967512) which is Authorised & Regulated by the Financial Conduct Authority.

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