Profile Financial Management Guest Blog

22nd March, 2013

SPONSORED FEATURE: from Profile Financial Management

As a business owner you will undoubtedly insure your buildings, stock and business equipment against fire, theft and a multitude of other risks. I expect you will also ensure that you have cover if you were to lose business profits as a result of all these incidents as well as Public and Employers liability.

However you fail to miss the most important risk of all to your business and that is the loss of YOU or a Key person within your business!!!!

This can have a calamitous effect on your business in so many ways so it crucial that you consider some form of Business Protection Insurance.

So what is it?
It is a way of protecting your business following the ‘loss’ of a sole trader, partner, shareholder or a key employer.  Essentially there are five elements:
• Key person insurance – also known as keyman insurance
• Director/shareholder protection
• Partnership protection
• Business loan protection
• Sole trader protection

Business Protection Insurance provides an all important safety net for all types of businesses.  It is all too common for Businesses to view Business Protection Insurance as an optional extra.  It would be a far safer way of trading to consider Business Protection Insurance as part of the business plan from the first day of trading.  Businesses all over the UK cease trading for all sorts of reasons but many of which could be prevented had they had some form of Business Protection Insurance in place.

So why is Business Protection Insurance necessary?
Business Protection Insurance ensures that you, your co-workers and the business itself are insured for the unexpected.  When Business Protection Insurance is in place and you experience the unexpected you can:-
• Keep the business trading
• You can replace key individuals
• Protect corporate debt
• Buy out a shareholder if they become critically ill or buy their share from their estate if they die.

If Business Protection Insurance still doesn’t make sense then hopefully you will be open-minded enough to read the statistics below.

Thinking that ‘it won’t happen to me’ is not going to help you, your fellow shareholders or your family if you are proved wrong. We all die and hospitals are full of people who also thought it might never happen to them.

Only 5% of businesses in the UK have any form of Business Protection Insurance according to research done by Legal & General.

In the UK, one if three people develop cancer in their lives and one in four will die from it. In total in 2004,152857 people died from cancer in the UK. There are 289,000 new cases of cancer diagnosed each year.
Source – National statistics online and cancer research website 2006.

In the UK, the lifetime risk for breast cancer in women is one in nine. In 2005 45,500 women were diagnosed with breast cancer.
Source – Cancer research website 2006
In 2005 in the UK, 1 in 5 men and 1 in 6 women died from heart disease
Source – British Heart Foundation

Someone has a heart attack in the UK every 2 minutes and almost 2.6 million peole have heart and circulatory disease.
Source – British Heart Foundation.

In the UK one person has a stroke every five minutes
Source – The Stroke Association website.

Every year, at least one in 13 deaths in the European Union is likely to be related to excess weight.
Source – Infant and Dietetic Foods Association.

Over 1.65 million people will be off work due to illness each year for 6 months or more

So don’t think it is not going to happen to you because statistically it could.

If you want to discuss your own specific Business Protection Insurance requirements please get in contact with us via email info@profilefm.co.uk or phone 01768 840000. The first hour of our time is at our cost so why not take advantage of this free consultation.

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