Company and Owner Protection

Shareholder Protection

Shareholder protection insurance is like life assurance, for your business.

If your business has a value, have you thought about how your family could get at that value if you were to die? They could come in and run the business - imagine that! Or could arrange a sale, but both options would take time.

With shareholder protection, we put in place enough life assurance to match to the value of your share in the business so that a cash value is available at the right time.

Shareholder protection works best when we analyse alongside your Legal Team. They can help with wording to suit all the shareholders. The right wording is also important to make sure that you don't risk your eligibility for business property relief.

We can also work with your accountant to help you decide what value to place on the business.

Our service covers the whole advice process, from considering the value of the business with you, to arranging cover and liaising with your legal team.

If you have worked hard to build your business to a value that your family would rely on, this is an important aspect of financial planning, please get in touch.

One of the biggest threats to an SME’s on-going success is the loss of a company owner, director or key employee. The impact on the business can be massively detrimental. At Parsonage we say ‘get on the front foot’.  The best thing to do is to acknowledge the risk, assess it, and take the appropriate action to protect the business. Every company is different and will need different solutions, but here are broadly the areas we look at:

Key Person Protection

Within many SME’s there are key leaders and employees who really drive the business and revenue. But what happens if these people are unable to continue their work due to a critical illness or premature death? The reality is that this can often cause financial strife and turmoil. Key Person Protection is there to help the business cope by providing a financial injection to support the business through a transitional period and to facilitate the search and recruitment of new people.

Loan Protection

As many of us do when looking at our personal finances, companies can take out life and/or critical illness insurance to repay the company borrowings if an owner or key member of staff were to be unable to continue driving the business. Clearing the debt can ease the burden on cash flow at a difficult time.

Cover Company Debt

Many banks insist on life insurance to cover company debts as a condition when they offer lending.

If you are borrowing to expand the business or to move premises, we doubt you will have time to shop around for this cover, but let us take the strain. We'll shop around for you to find the best rates we can and we will do what we can to minimise the disruption to your working day.

Even if your bank isn’t insisting on cover, we recommend it.  After all, the consequences of not having cover in place can be worse than the hassle of arranging it.