There’s a reason that employers hold rigorous interviews for new positions and offer attractive benefits to their existing staff: a diligent workforce can be the make or break of a company’s success, and once you’ve got a good team, you’ll want to keep them. Unfortunately, poor health or loss of life are not factors any business owner can control, but it is something that they can prepare for.
Business protection insurance is the term for a number of policies which can protect a business following the death or incapacity of one of its owners, employees or shareholders. The policy can pay out a cash lump sum following the death or critical diagnosis of an individual in the business, to cover lost profits, to train and hire new staff or to pay off outstanding debts of the deceased.
Finding a Provider
- Approaching an insurer directly – An easy way to find business protection insurance is to browse the websites of different insurance providers or enquire directly over the phone. Many insurers offering commercial products can provide business protection insurance, details of which you can typically find on the provider’s website. Here, you can browse the features provided by each policy, as well as the available add-ons that you can integrate into a plan.
- Going through a broker – Arranging cover through a broker can offer multiple advantages. Firstly, brokers can provide impartial advice on the range of features that could be beneficial to a business, as well as advise you on a sufficient limit of indemnity. Brokers also tend to have access to a wider portion of the market as many insurers offer deals with lower prices and broader coverage exclusively to brokers. Extensive industry knowledge puts them in a strong position to recommend particular products over others, to ultimately find you a better deal for a lower price.
- Using a comparison site – There are hundreds of insurance providers to choose from, each with multiple products on offer. Comparison sites can be a helpful starting point to seed out companies which can offer you particular features or cater to a specific budget. Many of these sites allow you to filter search results by various criteria, to hone down your search even further, enabling you to find products which directly match your requirements.
Business Protection Insurance Providers
This list offers an overview of the business protection insurance market, providing a summary of the products available from various providers.
AIG
Comprehensive business protection insurance is available from AIG, who offer four principal solutions: key person cover, business loan protection, shareholder protection and partnership protection. AIG can create flexible policies which change in line with the business, with the option to write a plan with a specified term or on a five or ten-year renewable basis.
A policy with AIG comes with significant benefits, such as their Best Doctors scheme which offers the insured person an invaluable second medical opinion to get the right diagnosis and facilitate the best treatment and care. A policy also includes the Smart Health service, which helps policyholders and employees manage their health and wellbeing and get access to some of the world’s top medical specialists. AIG’s commercial line is available exclusively through intermediaries.
Aegon
With a five-star rating from Defaqto and Moneyfacts in 2020 for their critical illness protection, Aegon is one of the largest providers of life insurance products in the UK. As such, they offer one of the most extensive business protection solutions on the market, which includes a wide variety of additional features such as life protection, critical illness protection, key person income protection and executive income protection.
Aegon is able to provide a great deal of customer support through their specialist advisers to help businesses determine suitable cover levels, with dedicated underwriting teams capable of writing policies that cater to complex needs. You can access their commercial products through a broker.
Towergate Insurance (Broker)
With a rating of 4.6 out of 5 on Feefo based on nearly 10,000 reviews, Towergate has access to over 300 specialist insurers. They can build bespoke policies featuring key employee cover, shareholder or partnership cover, business loan protection as well as life cover for employees, allowing business owners to support the families of their valued staff members in difficult times. You can generate a quote using their online tool, speak to their business protection insurance team over the phone, or request a callback.
LV=
LV= offer flexible, simple business protection solutions designed for small businesses. Their products comprise key person cover, relevant life cover and share and partnership protection. Not only are their specialist Business Protection team available for support and queries, but they also provide a range of resources on their website to help companies understand their business risk.
Policyholders have access to two value-added services. One is the LV= Business Care Line which provides small businesses with free legal and tax advice, and the second is LV= Doctors Services, a compilation of six medical services over the phone or via an app. Here, insured persons can access prescription services, remote GPs, physiotherapy and psychological services, discounted health MOTs and a valuable second opinion following a difficult diagnosis. Quotes and cover can be arranged through a broker.
Aviva
Business protection insurance solutions from Aviva are available for public and private limited companies, limited liability partnerships, individual partners as well as sole traders. Their policy includes key person insurance, shareholder protection and business loan protection as standard, with the option to add critical illness cover.
A specialist financial team, together with medical underwriters, can create bespoke policies, where clients can choose their amount of cover and policy term, as well as level or decreasing cover for business loan protection. Aviva’s efficient claims process makes it easy for policyholders to claim online or over the phone. Policies must be arranged through a broker.
Aston Lark (Broker)
Businesses of all sizes from all sectors can arrange a business protection insurance policy through Aston Lark. They can offer an extensive policy to cover a range of key figures in a business, including an employee, shareholder or business owner. The policy can pay out a cash sum if the person insured passes away, and can also offer critical illness cover as an optional add-on. Their product includes key person cover as well as shareholder or partnership protection. Policyholders benefit from an efficient in-house claims service, and new customers can generate a quote through their online quote calculator.
Legal & General
A range of business protection policies are available from Legal & General, including key person protection, share protection, business loan protection and relevant life. Legal & General are specialists on the subject, having published an award-winning report on the need for business protection among SMEs. Their policies offer a maximum indemnity limit of £5 million and come with an accidental death benefit included as standard. You can choose to add critical illness or terminal illness cover for an additional cost. Legal & General provide helpful online calculators on their website for companies to work out their level of risk and a suitable level of cover, as well as an online quote tool.
VitalityLife
One award-winning life insurance provider is VitalityLife, who received a 5-star rating from Defaqto for their critical illness cover and life cover in 2020 for the eighth year running. They offer three levels of business protection insurance, which flexible policies that include key person protection, shareholder and partnership protection and business loan protection.
VitalityLife take an innovative approach to their business protection insurance by integrating wellness into their products as part of their Vitality Programme. The scheme offers financial incentives to businesses who use the service to make positive lifestyle changes, including lower premiums and other discounts. Companies can use their numerous online calculators to determine their level of risk as well as how much they could save with a policy.
Zurich
Sole traders, partnerships, limited companies and more can take out a flexible business protection policy from Zurich, designed to cover a business’ liabilities, key people and shareholders. Their coverage is flexible, adapting to a company’s evolving insurance needs. Their policy includes key person cover and shareholder protection and can be arranged as life cover or life and critical illness cover.
Policyholders can also benefit from Zurich Support Services, where they can receive emotional support for a range of personal and work-related issues. The service is available 24 hours a day all year round and is effective from the start of the policy. Zurich’s products are available exclusively through a broker.
LifeSearch (Broker)
As an independent broker specialising in life insurance products, LifeSearch has a team of expert advisers on hand to offer impartial advice and find suitable policies tailored to your needs. Their business protection products can include a broad array of features, such as relevant life cover, business loan protection, ownership protection and employee benefits. Customers can choose between a life cover policy or life and critical illness coverage for added protection. If you’re interested in a policy, you can call LifeSearch for free initial advice or complete an online quote form to receive a personalised price estimate.
Royal London
There are several products on offer from Royal London to protect a business against the loss of integral company figures. They can offer key person cover, business loan protection and shareholder protection, with an additional option to add a relevant life plan. These policies come with Royal London’s Helping Hand, a comprehensive, independent support service which consists of a legal helpline and a dedicated nurse, who can offer a second medical opinion, recovery support following a heart attack or stroke and grief counselling.
AXA
The AXA XL Insurance Life Syndicate was founded in 2009, offering life insurance solutions in the UK and internationally. Their life insurance solutions for businesses can feature a range of business protection coverage, including key person, business loan cover and shareholder and partnership protection. They are able to underwrite flexible policies that cater to complex medical cases, with the option to cover death, accidental hospitalisation, critical illness and disability. Plans are suitable for any size business, from private individuals to multinational corporations. Their business protection insurance is only available through brokers and intermediaries.
Essential Insurance Group (Broker)
As one of the largest life insurance brokers in the UK, Essential Insurance assigns you an award-winning adviser who can offer no-obligation advice and arrange flexible cover to suit your business needs. They can provide shareholder protection, key person insurance and relevant life cover, with the option to add critical illness cover for further cover. You can speak to one of their experts over the phone or request a callback to obtain a quote.
