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Providing financial resilience
Protect your business from the unexpected. Chadwicks provides expert advice on Key Person, Shareholder, and Relevant Life cover tailored to your business needs
Running a business involves risk - and not just market risk. The sudden loss of a key person, shareholder, or senior team member can threaten stability and growth. Business protection insurance helps safeguard what you’ve built, providing financial resilience and continuity when unexpected events occur. It’s a vital part of any robust financial strategy.
Key person insurance helps protect the business against the financial impact of losing someone critical to its success. Whether it’s a founder, technical lead, or top salesperson, their absence could affect revenue, client relationships, or even the ability to secure funding. Key person insurance provides a cash injection to help the business recover—covering recruitment costs, lost income, or temporary support.
Shareholder protection insurance ensures that if a shareholder dies or becomes seriously ill, the remaining owners can retain control of the business. Without a plan, shares may pass to family members who aren’t involved in the company – or worse, be sold externally. Shareholder protection policies are typically backed by cross-option agreements, giving surviving shareholders the funds and legal framework to buy out the affected party’s shares smoothly.
For directors, senior employees and other higher earners, Relevant Life Policies offer a tax-efficient way to provide death-in-service benefits. These policies are written in trust, paid for by the business, and don’t count towards the individual’s pension lifetime allowance. They’re especially useful for smaller firms that don’t have a group scheme, or for directors who want to protect their families without triggering unnecessary tax charges.
At Chadwicks, we help businesses assess their risks and tailor protection to fit their structure, goals, and budget. We work closely with legal and tax advisers to ensure policies are correctly set up and integrated with shareholder agreements and succession plans.
Ultimately, business protection is about resilience. It’s about making sure the business can weather unexpected events without jeopardising its future, or the financial wellbeing of those who’ve helped build it.
What is business protection insurance?
Business protection insurance provides financial support if a key person, shareholder, or senior employee dies or becomes seriously ill. It helps your business stay stable during unexpected change – covering costs such as recruitment, loan repayments, or buying out shares.
Why is business protection important for small and medium-sized businesses?
Smaller businesses often rely on a few key people. Losing one of them can disrupt cash flow, relationships, or even ownership control. Business protection ensures continuity, giving owners and employees confidence that the business can recover and keep moving forward.
What types of business protection should I consider?
There are three main types:
How does shareholder protection work?
Shareholder protection insurance provides funds for surviving shareholders to buy the shares of a deceased or seriously ill partner. This prevents shares being sold externally or passed to family members, helping maintain stability and control within the business.
Is business protection insurance tax-deductible?
Tax treatment varies depending on the policy and how it’s set up. Key Person Insurance premiums may sometimes be deductible, while others (like Relevant Life) offer tax advantages to the employee. We work with your accountant or tax adviser to ensure everything is structured efficiently.