Norwich: 01603 760866
Ipswich: 01473 255948
FAQ's
What is Business Protection?
We refer to business protection as Shareholder and Key Person protection. These arrangements are designed to protect the shareholders’ equity value and typically paid for by the business (however, depending on how the policy is setup, there may be tax implications).
We refer to business protection as Shareholder and Key Person protection. These arrangements are designed to protect the shareholders’ equity value and typically paid for by the business (however, depending on how the policy is setup, there may be tax implications).
Am I required to have Shareholder Protection?
No, but you’re required to have a shareholder agreement. This agreement outlines your intentions regarding your shares should you pass away. Shareholder protection ensures that the surviving shareholders have the capital available to buy the shares from the deceased shareholder's estate.
No, but you’re required to have a shareholder agreement. This agreement outlines your intentions regarding your shares should you pass away. Shareholder protection ensures that the surviving shareholders have the capital available to buy the shares from the deceased shareholder's estate.
Who is deemed a Key Person?
It’s up to the business to decide. This could range from a Salesperson to a CEO. However, the insurer will want to make sure the sum assured is appropriate to their contribution/worth to the company.
It’s up to the business to decide. This could range from a Salesperson to a CEO. However, the insurer will want to make sure the sum assured is appropriate to their contribution/worth to the company.
Safeguarding your business from the unexpected
How would your business fair if a key person were to suddenly suffer a long-term injury, illness, or were to die unexpectedly?
Complications that arise from a sudden lasting or permanent absence of a business owner, shareholder, or other key persons can threaten business continuity, cause serious disruption and, in some cases, even threaten the survival of your business.
At SG Corporate Services, our expert team provide advice on business protection solutions that aim to safeguard your business against unexpected events.
As our advice is independent, we’re able to effectively tailor the solutions we recommend to the individual circumstances of each client and ensure each proposal is cost-effective.
Types of business protection
Shareholder protection
The death of a shareholder or business owner is likely to disturb business progress and cause problems for both the business and the family of the owner concerned.
Shareholder protection minimises disruption by allowing the surviving shareholders to purchase the deceased’s equity and remain in control of their business, without potential disputes, lengthy probate processes and other unwanted outside involvement.
This works via the issuance of a cash lump sum; however, is dependent on an agreement being in place. As well as the benefit to the business, this is also reassuring for the deceased’s family, as they have the peace of mind that a sum has already been agreed for the transfer shares.
Key person protection
If your business recognises that there are key persons whose loss through injury, illness or death would result in a significant loss in sales revenue, key person insurance could be a valuable safeguard.
By calculating the value those persons bring to your business, a key person protection policy can pay lump sums or income that can be used by your business to aid cash flow, repay outstanding debts, support staffing costs towards replacing the individual.
These policies are often a valuable lifeline at a time when the businesses future is uncertain.
We’re here to help you
- Dedicated employee benefits consultants: Our consultants are employee benefits and workplace pensions specialists. They only work with businesses, giving you the peace of mind that their advice is informed and in your best interest.
- Personalised advice: Each client is different, and we base our advice and recommendations on the needs of your business and its employees.
- Independently owned: We’re not tied to specific providers and can access the entire market to find the most suitable solutions for you.
- Transparent charging: You’re made aware of our competitive fees from the offset. We prefer to work on a fee-based charging system and will not take commissions, were possible.
- Reduce administrative burden: Our guidance streamlines processes and ensures smooth management.
- Ongoing support: Our team are available to review your arrangements on an ongoing basis and will work with you to ensure everything remains suitable.
Start protecting your business today
Are you ready to take the necessary steps to safeguard your business against the loss of a key person?
Inaction could be costly, but our team are here to help. Through our independence, we can access the whole market to help you put cost-effective business protection solutions in place that meet the needs of your business.
Contact our team in Noriwch or Ipswich today to find out more about your options and how we can assist you.
Click here to contact our Business Protection Team
Please note, we're unable to give legal advice and you may need to seek the services of a solicitor on some arrangements.
