Business Protection

We treat each application for Business Protection on a case by case basis. Depending on the type and size of your case we may ask for further information and your case may take longer to arrange. Here are some possible examples.

Simple case

You are the owner of a small furniture manufacturer employing three crafts people. The business is thriving and you require new premises to expand. Your bank has lent you £250,000 to allow this, but they require you to have Business Protection to protect the loan.

We normally only need the application form to financially underwrite this case.

Average case

You are one of the Creative Directors of an advertising agency. You are the primary contact with a number of important accounts, managing advertising campaigns on their behalf. These accounts are the major source of income for the agency, contributing around £600,000 to the profits.

The board of directors has recognised that if you were to die or suffer a serious illness, it would present a serious financial risk to the business. As a result they are seeking to protect the business from your loss, due to death or critical illness, by purchasing Key Person Cover.

We would ask for a Business Financial Questionnaire demonstrating how you are ‘key’ to the business.

Complex case

Five shareholders privately own a glass and window manufacturing business. The Managing Director has 41% of the shares, the Sales Director 24%, the Finance Director 15%, and the two final shareholders have 10% each.

The business has an average net profit over the last three years of £350,000 and fixed assets that include the factory premises, stock and raw materials of £450,000.
The shareholders have each agreed to take out Shareholder Protection.
We:

• Would require Business Financial Questionnaires, detailing the shareholding of each director and a breakdown of how the business was valued. 
• Would also require the business’s audited accounts for the last three years.