Individual Protection from AIG

why a business needs protecting

Your client may have already taken steps to protect their business against major catastrophes and put together a business continuity plan to ensure its future if things go wrong.

The death or critical illness of a key employee or a co-owner can have a major impact on the business. It could lead to:

  • A fall in sales;
  • A delay to product launches;
  • Delays in the completion of existing contracts (and possible financial penalties);
  • A lack of confidence in the business from a bank, suppliers, customers and other employees;
  • Loans may be called in;
  • Suppliers may demand payment upfront;
  • Customers may choose to go elsewhere; or
  • An increase in recruitment costs, ‘head hunting’ fees, or training costs for a replacement.

Without the cash to buy out a co-owner, the business could even end up in someone else’s hands.

What is business protection?

Business protection is a type of insurance that helps protect a business against possible financial losses when illness or death affects the owners or their employees. By including business protection in a firm’s business plans, owners can help the business to survive and continue trading under seriously challenging circumstances.

Business protection is different to personal protection because it reflects particular business needs. For example, the insurance could cover the life of another person such as a key employee, to protect against significant loss of earnings should they die or while they recover from serious illness. Business protection can also be used to ensure the ability of business owners to repay a loan in similar circumstances.

Who can take out business protection?

There are protection solutions available for the specific needs of different types of business, be it a limited company, sole trader, partnership, or limited liability partnership (LLP).

There are different ways of approaching business protection, particularly for partnerships and shareholders. Depending on the circumstances, it is possible to take out a ‘life of another’ plan or an ‘own life’ plan, which is then written into a business trust.

AIG provides four main solutions:

Key person protection

Business loan protection

Share purchase protection

Partnership protection


F&TRC Business Protection Ratings

Ratings provided by Finance & Technology Research Centre (F&TRC)

Business Protection - key person calculator


Business Protection - premium equaliser calculator


Business Protection - business valuation calculator


Business Protection – how to start a conversation with your clients


AIG Business needs risk assessment form



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