Business Protection

Running a business involves risk — from the sudden loss of a key person to the unexpected departure of a partner. Business Protection Insurance provides financial security for your enterprise, helping protect against loss of income, fund buy-sell arrangements and keep your business stable through challenging times.

At J Finance, we help business owners understand the types of protection available, how they work, and which solutions are right for your business’s size, structure and long-term plans.

1. Key Person Insurance

A key person is someone whose skills, expertise, or leadership are vital to your business’s success. Key person insurance provides a financial payout if that individual becomes critically ill or passes away, helping to cover potential losses and ensuring your business continues to operate smoothly.

2. Shareholder Protection

If a business partner or shareholder passes away or can no longer work due to illness, shareholder protection insurance ensures the remaining owners have the financial means to buy their shares. This prevents uncertainty, protects business continuity, and provides financial security for the affected shareholder’s family.

3. Group Life Insurance (Death in Service)

Offering group life insurance is a great way to support your employees and their families. If an employee passes away while working for your company, their beneficiaries receive a lump sum payout. This valuable employee benefit enhances staff retention, well-being, and workplace satisfaction.

4. Relevant Life Insurance

A tax-efficient life insurance policy designed for directors and employees, relevant life cover provides financial protection for an individual’s family while being paid for by the business. It’s a cost-effective way to offer life cover without it being treated as a benefit-in-kind.

The success and longevity of your business may depend on key people — founders, directors, sales leaders, technical specialists or anyone with vital skills or client relationships. If one of these individuals is unable to work due to serious illness or death, the financial strain can be significant.

Business Protection gives you options to:

Maintain Cash Flow

Replace lost revenue or cover ongoing expenses when a key person is absent.

Support Buy-Sell Agreements

Provide funds so remaining owners can buy the shares of a departing partner without putting personal funds at risk.

Protect Loan Repayments

Ensure business loans or creditor commitments can still be met if the financial contribution of a key person is lost.

Preserve Business Continuity

Help your business survive transitional periods and protect long-term plans from disruption.

Here’s a straightforward overview of how this cover typically functions:

1. Assess Business Needs

We start by understanding your business structure, revenue streams and the roles that are essential to success.

2. Identify Critical Risks

We look at the financial impact of losing key personnel, shareholder exits and loan liabilities.

3. Choose the Right Protection

Based on your needs, we recommend the most suitable combination of key person, shareholder or loan protection.

4. Calculate Cover Amounts

We help determine appropriate sums insured — enough to protect cash flow, buy-sell arrangements and creditors without over-insuring.

5. Implement and Support

We help you arrange the right policies, explain the terms and support you throughout the policy lifecycle.

Business Protection is relevant for:

• Start-ups and small businesses with key founders or directors

• Established companies that depend on senior staff or specialists

• Partnerships or limited companies with shared ownership

• Businesses with existing borrowing or future investment plans

• Companies with long-term clients or contracts linked to individuals

Even if you think your business is “well insured personally,” it’s worth reviewing whether your commercial risks are properly covered — the two aren’t interchangeable.

Business protection isn’t a “set and forget” product. You should review it when:

• You take on new key staff or directors

• Ownership structures change

• You take on new loan or credit facilities

• Your revenue or business strategy changes

• The business expands or diversifies

• Key contracts or relationships shift

Regular reviews help ensure your cover remains aligned with your business’s evolving needs.

Business Protection can be complex, with policy terms, tax considerations and ownership issues to navigate. At J Finance, we:

• Assess your business structure, finances and risks

• Explain protection options in clear, jargon-free terms

• Recommend tailored solutions that align with your strategy

• Support you through application and policy setup

• Review protection as your business grows and changes

We aim to ensure your business is protected in a way that makes sense for you and your stakeholders.

Here are some useful suggestions when arranging business protection:

Understand Your Key Risks

Document who contributes what to revenue and what would happen financially if they were not available.

Link Protection to Agreements

Make sure shareholder or partnership agreements reflect the financial mechanisms you want protection to support.

Consider Tax and Legal Advice

Business Protection can intersect with tax and ownership law — professional advice ensures you get the most effective arrangements.

Review Regularly

As your business evolves, so do your risks. A regular protection review keeps your defences strong.

Business Protection helps secure your company’s financial future and gives you confidence that your enterprise can withstand unexpected changes in personnel or finances.

At J Finance, we’re here to help you understand your options and put the right plans in place.

📞 01635 521300
📧 contact@jfinance.co.uk