Business Protection Insurance

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

What is business protection insurance

The people in a small business are critical. If you’re an owner and a key employee dies or is too ill to work, 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 become seriously 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.

Smart Health

Meet Smart Health - the health and wellbeing service from AIG, designed with your physical and mental wellbeing in mind. Whether you need to talk to a registered UK GP or want to get some hints and tips from a nutritionist, you’ll be able to chat to a professional 24/7, 365 days a year and from anywhere in the world - all at no additional cost. There’s no cap on how many times you can use it, and your partner and any children up to age 21 can take advantage too.


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How to buy

There are a number of ways you can get AIG cover for you and your business. To find the right option for you, head to our dedicated How to Buy page.


Get covered

Literature and support materials

Term Assurance for Business - Key Facts

Get into the detail on AIG’s Business Protection with Term assurance cover with our Key Facts document.

Download Updated 13 Dec 20
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 19 May 24