Guide to business protection

  • To list the various risks to a business.
  • To understand what sort of cover works for various clients.
  • To ascertain how business protection can help with succession planning for advisers and clients.
Guide to business protection


From the smallest start-up to the largest multi-national, all firms have one thing in common: the strength and resolve of their people.

Whether your client is a visionary like Elon Musk or a roll-your-sleeves-up chief executive like Brian Dunn, the most important thing about their business is themselves, and any people around them.

But while remuneration packages can be lucrative for people at the top - good pensions, company car, generous holiday allowances, profit shares and bonuses - how much will it cost the business if the boss or the senior staff end up sick or unable to work?

How much would it cost to rehabilitate them, bring someone in to share their workload while they recover or, in the worst scenario, replace them? How would such a situation affect succession planning? 

Key person, executive income protection, group protection and other forms of business protection are, therefore, essential elements for your corporate and self-employed clients to consider.

It's not just about protecting the business, it is also about showing senior staff they are valued and valuable to the firm.

Moreover, while advisers are busy making sure their clients have appropriate key person or similar cover, how many financial advisers are practicing what they preach? What sort of cover do you have in place should you become incapacitated or unable to work - especially if you are a sole trader?

This guide will explore why business protection matters, what sort of protection is most useful in different work situations, and how it can help with business protection.

The guide qualifies for an indicative 60 minutes' worth of CPD.

Contributors to this guide: Emma Thomson, life office relationship director for Lifesearch; Paul Moulton, SME director for Axa PPP Healthcare; Richard Kateley, head of intermediary development for Legal & General; Tom Conner, director of insurance for Drewberry; Alan Lakey, founder of CI Expert; Andy Simmons, senior protection specialist at Vitality Life; Johnny Timpson, protection specialist for Scottish Widows; Aegon; Zurich; The Office for National Statistics; HM Revenue & Customs.

Simoney Kyriakou is content plus editor at FTAdviser

In this guide

  1. According to Mr Kateley, what could the loss of a key employee end with?

  2. Mr Timpson says businesses can choose to manage business risks:

  3. What has made the role of business protection more important, according to Andy Simmons?

  4. For Mr Lakey, which is the first consideration for most clients?

  5. According to Mr Thomson, most people do not know what they need to buy, which is why getting advice is so important. True or false?

  6. How can health insurance help businesses, says Mr Moulton?

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