Introduction

Life is full of risks. To guard against them we insure our homes, cars and possessions, and try to safeguard ourselves from the effects of health issues and personal injury. We do the same at work, insuring ourselves, our employees and our assets from accidents and potential claims made against us. But although some risks are obvious, others are not, and some, if the worst were to happen, could mean you lose control of your business or even lose it altogether. The risks involve co-owners and shareholders, key people and loans.

If you’re a co-owner of a business, either as a partner or shareholder, you should certainly consider ‘shareholder protection insurance’. If your partner dies the partnership would be automatically dissolved; if they are a shareholder, their share of the business may be inherited by someone who either has no interest in the business or doesn’t have the time or skills to make it a success.

Many SMEs have employees who are indispensable; without them the business may struggle financially or even fail. Although a large business is usually able to survive the effects of losing a vital member of staff, the financial loss could be disastrous for a small business. So you should think about ‘key person protection insurance’ to help safeguard your business against the death or critical illness of someone essential to its well-being.

It’s common for businesses to borrow money, but could you repay any loans if you had to, and what would be the effect on your business? If you, or another co-owner or key person, died or suffered a critical illness you may not be able to continue servicing the debt and you may be asked to repay it in full. Similarly, you may also have to repay any directors’ loans – something you may not be aware your business had. Paying large sums of money at short notice could be a significant problem for your business – ‘loan protection insurance’ could save the day.

It’s all about risk management. Knowing what the risks are means being able to make a considered decision about whether you should take out insurance to protect your interests and what level of cover you need. It won’t compensate for the loss of a friend and valued member of the business, but it may help you keep your business and secure its future.
 

How can One Financial Solutions help you?

Life is full of risks. As a firm of independent financial advisers we can provide you with impartial advice to help you identify the potential risks that you and your business may face.

We’ll work with you to plan an appropriate protection strategy, recommend the best products from across the whole of the financial services’ market, help implement the protective safeguards you need and provide a periodic review. It’s all about ‘risk management’; knowing the risks you face means you can protect your interest in your business.

So, if you’re looking for help with any aspect of protecting your business, please call us on 020 3714 9565 or ask us to call you by sending an email to admin@onefinancialsolutions.co.uk.