Business Protection

Business Protection

The purpose of Business Protection is to protect your business from the adverse financial effects of the death of a Key Person, Partner or Shareholder.

This can be especially important to smaller companies whose reliance on key individuals may be greater than larger corporate entities. There are two main types of business assurance; Key Man and Partnership/Director Share Purchase:

Key Man

Used to inject a lump sum of cash into the business in the event of the loss of a 'Key Person'. A key person would be someone whose death would have a direct and adverse effect on the companies' income (and therefore profitability).

Partnership / Director Share Purchase

Used to protect the families of Directors and co-owners of the business in the event of the death of one of the Partners/Directors. Each party agrees beforehand the value of his or her share and a combination of Term Assurance policies and legal documents are put in place. This ensures in the event of a partner or shareholders death, that the remaining co-owners have a sum of money in place which will enable them to 'buy out' the family of the deceased.

For an initial enquiry or a comprehensive financial review please email enquiries@pennymatters.co.uk