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Business life insurance
Running a business is one of life’s great journeys, but there is a lot at stake for any business owner: your financial security, your professional relationships and your livelihood.
By having a plan B, you can safeguard the financial health of your business, and that’s where business life insurance comes in.
In this guide we’ll take a look at what business life insurance means, and which policies you may want to consider for you and any business partners.
What is business life insurance?
The world is an unpredictable place, but business life insurance offers businesses a greater degree of financial certainty.
Essentially, it’s there to protect your business’s finances if something unforeseen – such as critical illness or death – happens to you, your staff or a senior stakeholder.
In reality, ‘business life insurance’ is a broad term that encompasses many different forms of business protection, as we’ll explore here.
Business life insurance for sole traders
If you’re a sole trader, you’re eligible to set up business life insurance in the form of Key Person Protection, Business Loan Protection or a Relevant Life Plan is designed for you employees. If you’re just getting started as a business, read more about sole trader status on GOV.UK.
Life insurance for business partners
If you operate within a business partnership, you can set up Share Protection, Key Person Protection and Business Loan Protection ‘in trust’. With a Relevant Life Plan, employees of a partnership (including salaried partners) are eligible, as well as Limited Liability Partnerships.
Business life insurance for limited companies
Limited companies can take out a Relevant Life Plan for employees, which can include company directors, or Key Person Protection and Business Loan Protection on the life of a key person and Share Protection.
Business Life Insurance for Limited Liability Partnership (LLP)
An LLP can apply for a Relevant Life Plan for the employees, or Key Person Protection, Business Loan Protection on the life of a key person and Share Protection.
Which life insurance is right for my business?
Small businesses with less than five employees may want to consider a Relevant Life Plan, as they’re unlikely to be eligible for a group business life insurance scheme. There's also a variety of options, including for larger companies, such as Key Person Protection, Business Loan Protection and Share Protection.
Want to learn more about business life insurance?
Life has a habit of throwing up surprises, but with business life insurance in place, you can give your company business some peace of mind and continue focusing on what you do best.
Looking to take out a business life insurance policy? Our friendly team of financial advisers can offer you professional advice on which plan may be right for your company.
Speak to a qualified financial adviser
You can call our team on 0800 197 9208 from 9am to 5pm Monday to Friday (note - we may record and monitor calls), or email us at firstname.lastname@example.org. We’d be delighted to advise you on how to protect your business’s financial future.