Business Protection Insurance

Business protection insurance can be used to cover business loans or protect against the loss of a key person, partner, member or shareholding director if they are diagnosed with a critical illness, terminal illness or they die.

What is business protection insurance

People are critical in small businesses. If you’re an owner and a key employee dies or falls ill, it can have a massive impact on the business. You’re likely to be concerned about making sure the business will continue to run until a replacement can be found, or until the colleague returns to work. Cash flow could become a major worry.

Putting business protection insurance in place gives you the security of knowing that your business can survive in seriously challenging circumstances.

Why a business needs protecting

Your staff are your most valuable asset. That’s why the death or illness of a key employee or owner can have a major impact.

You may already be insured against major catastrophes, accidents and other events. However, if you don’t insure your employees, you may still be putting yourself (and your business) at risk.

When your strength is in your staff, you should consider covering them.

By taking out business protection cover, you can help your business continue to survive during difficult times.
The death or critical illness of a key employee or a co-owner could lead to:

  • A fall in sales
  • Delays completing existing contracts (and possible penalties)
  • A lack of confidence in the business from a bank, suppliers, customers and other employees
  • Loans (that may be called in sooner than expected)
  • Suppliers may demand payment upfront
  • Customers may choose to go elsewhere
  • An increase in recruitment costs, head hunting fees, or paying to train a replacement
  • Cash flow issues (in extreme circumstances, such as needing to buy out a co-owner, the business could even end up in someone else’s hands)
  • A delay on product launches

With business protection insurance, you can keep control and protect your business from these consequences.

Our solutions

We offer four main solutions, which are all available as either Term Assurance or Critical Illness with Term Assurance policies:

Key person cover protects businesses if an employee who significantly contributes to their success becomes terminally or critically ill, or dies.

Business loan protection gives co-owners cover for any business loan payments that may be at risk, in the event of a key shareholder’s death or illness.

Share purchase protection allows for a planned succession of a shareholder or partner’s business stake should they fall ill or die, with options such as required buybacks.

Partnership protection can provide partners with the cash flow necessary to buy back the ownership stake from a partner or member who has died or been taken ill.

We also have a dedicated specimen business trust and associated documents that can be used in conjunction with our products.

We cannot advise on whether putting a plan into a trust would be suitable in your particular circumstances and would recommend that you take professional legal advice on the suitability of these specimen documents.

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Best Doctors®

We give your clients access to Best Doctors for invaluable second medical opinions. Their knowledge helps your clients and their immediate family get the right diagnosis, treatment and care.

Smart Health

From on-demand consultations with UK based GPs, to Best Doctors - the expert case management service with the world’s top medical specialists, our Smart Health service is a convenient way to connect you and your family to tools to help manage your family’s health and wellbeing from anywhere in the world, 24/7.

DISCOVER MORE

Smart Health and Best Doctors are non-contractual benefits which can be withdrawn at any time without notice.

Literature and support materials

Term Assurance for Business - Key Facts

For more information on AIG's Business Protection with Term Assurance cover, visit our Key Facts.

Download Updated 30 Sep 18
Critical Illness for Business - Key Facts

For more information on AIG's Business Protection - Critical Illness with Term Assurance cover, visit our Key Facts.

Download Updated 30 Sep 18