In somewhat astonishing research recently carried out by Legal & General it revealed that 59% of business owners had insurance for their pets but not their “key persons”. Being self employed is hard and time consuming and sometimes insurance is the last thing you want to think about when you are too busy growing the business and maintaining the day to day company obligations like paying employees wages. But have you actually stopped recently to think about what the consequences will be when something that you are not prepared for, happens.
Most businesses have policies in place for fire evacuation procedures or even in event of a snow day but do you have a “Disaster Recovery Plan” for the event of death or illness of a director or key person in the business? 53% of businesses without any business protection in place said they would need to cease trading within a year after the death or critical illness of a key person.
In fact majority of business owners did not know that a “directors loan”, maybe lent to the company as a start up fund, became immediately repayable to their estate on death of that director. Would your business be strong enough to repay any directors loan or personal finance if they were to die? Or would you want your business partners beneficiaries to have a say in the running of your company? Business Protection can provide a lump sum insurance left in trust to the business to make sure that you have the money to buy out the shares left to the family in the estate to reclaim the business ownership to existing directors and leave the family a lump sum of money for the sale of the company.
Contact One 77 Mortgages Specialist Protection Department for a fee free quotation and advice on protecting your business.