Protect your business fromthe unexpected

Keyman insurance (also called key person insurance) is a life insurance or critical illness policy taken out by a business on a key employee whose death or serious illness would have a significant financial impact. The policy pays out to the business, providing funds to cover lost revenue, recruit a replacement, or repay business loans.

Shareholder protection ensures that if a shareholder dies or suffers a critical illness, the remaining shareholders have the funds to buy back their shares. Without it, a deceased shareholder's shares could pass to their family — who may have no business interest — creating serious complications for the remaining owners.

Relevant life cover is a tax-efficient life insurance policy arranged by a business for an employee or director. Premiums are paid by the company and are typically tax-deductible as a business expense. The payout goes to the employee's family rather than the business, making it an efficient alternative to a personal life insurance policy.

Partnership protection works like shareholder protection but for business partnerships. It ensures surviving partners can purchase the deceased or critically ill partner's share of the business, preventing unwanted third parties — such as family members — from becoming involuntary business partners.

Typically, you should insure a key person for an amount equal to their contribution to business profit, the cost of replacing them, or any business loans they have personally guaranteed. We will help you calculate the right level of cover and choose between life-only or combined life and critical illness policies.

It depends on the policy structure and purpose. Keyman insurance premiums may be tax-deductible if the policy is for short-term profit protection. Relevant life cover premiums paid by the employer are generally a deductible business expense. We work with your accountant to ensure the most tax-efficient structure.