WILL YOU PROTECT YOUR BUSINESS AND YOUR KEY STAFF IN 2022?

Updated: Nov 2



What can go wrong and what would happen to you and your business when it does?


Towers + Gornall's role includes planning for your financial future and protecting your business in the present, as well as of course taking care of your retrospective tax compliance.


Not only should you ensure you have a long-term financial plan to match your personal goals, if you are serious about those goals you also need to consider mitigating risks that could completely derail your business and with it those long-term aspirations.


In this video Q. & A. Eamonn Watson, and Martyn Wickens, from our Financial Services team discuss critical issues that arise for businesses, and the somewhat surprising answers to affordability questions that have surrounded Business Protection Insurance.

  • How can Towers + Gornall protect you, your business and your key staff?

  • Key person protection:- what happens to company profits if you fall badly ill?

  • Shareholder protection:- why it's so important to have an agreement in place.

  • Directors loans:- what happens to them if you die?

  • Death in service and group sick pay schemes :- are added benefits now the key to retaining core staff in a tough recruitment market?


This presentation is for information purposes only and does not constitute advice or a recommendation to act. The types of business protection suitable may vary depending on the circumstances of the business or individuals within. Independent advice should be sought before making a decision on business protection.


If you would like to have a free advice session with our team to have a look at how business protection would make you feel more comfortable, give us a call now on 01995 600600 or send our Financial Services team a message here.


Q:- What is business protection?

A:- Business protection plans are insurance policies that can be taken out in order to mitigate the financial risks to a business should a key employee or an owner die or get seriously ill. They are quite often overlooked by business owners who usually find out the consequences of not having something in place once it is too late.


Q:- What are the main types of business protection available?

A: - There are a few types available such as;

  • Shareholder or partnership protection :- which helps business owners retain control of the business if someone like a shareholder dies or becomes critically ill. It prevents control of the business passing to the wrong person by ensuring there are funds available to buy back control.


  • Business loan protection :- which will help repay financial debts such as loans, mortgage, directors loans, should a key person die or suffer a critical illness


  • Key person cover :- which can be used to replace profits to the company, as well as the cost in recruiting a replacement should a key employee die or become critically ill.


  • There are also other benefits available for businesses to take out on behalf of employees, such as group sick pay schemes, death in service schemes or if they just want to take out some cover for individual members of staff including Directors, they can set up relevant life schemes on their behalf.

Q:- Are there any tax advantages for setting up these types of plans?

A:- Some premiums are able to be treated as a business expense and therefore tax deductible, but it does depend on the type of cover, and what is being protected.

Q- Why is business protection important?

A:- It is very hard to prepare a business for the shock of the death of an owner or key employee. Almost equally so should they suffer a critical illness rendering them out of action for the long term. Most businesses would likely struggle to survive. By putting in place this insurance against the risk of this happening could be the difference between a business surviving or having to close.


Q:- Who should be looking at ways to protect their business? Is it just for Limited companies?

A:- Business protection is something that should be looked at for all types of businesses, including sole traders, Partnerships, LLP’s, and especially Limited companies. Not all types of plans are suitable for all businesses, but it is always worth finding out what is available by talking to an adviser.

Q:- Is there a fee for this service?

A:- No, we don’t charge a fee for protection advice, our fee should you go ahead with our advice is covered by commission from whichever insurance company you apply for a policy from.