Business Protection Insurance

All businesses face a raft of challenges, whether it’s new competitors entering the market, the bank manager not providing sufficient credit, or new government regulations to contend with. When it comes to SMEs, most will recognise that people are not only their biggest asset, but also the biggest area of risk for a firm. It is therefore crucial that firms identify these risks and take steps to either remove or reduce them by taking out a business protection insurance policy.

The tax treatment depends on the kind of policy being offered, with most employee benefits being taxable as a benefit in kind. Some policies can also provide tax efficient means of covering the lives of key staff. Contact us today and speak to one of our employee benefits consultants to find out more.

An employer should consider a relevant life policy (RLP) if they wish to provide tax-efficient benefits on the death in service of one or more employees, but do not wish to set up a group arrangement. An employer can also receive tax relief on premium payments under an RLP *

* based on our understanding of the current law and HM Revenue and Customs practice

Our business protection insurance advisers can help you to identify and understand the risk posed by the loss of a key employee within your business. To help with this, you could consider the impact of certain employees on the profitability of the business. What effect would their absence have on creditors, customers and clients, as well as competitors?

Given the greater awareness of retention and liability/fraud risks, firms are generally quite good at reducing the impact of and managing risks. SMEs make up approximately 99% of the businesses in the UK. These businesses tend to be reliant on a few key people that really help drive the business and so the temporary or permanent absence of a valuable member of staff can have a significant impact on the continuity of your business.