Joint cover for Business Partnerships

Protect the people who make your business

• Do you run a business with a partner?
• What happens if your business partner dies or can no longer work?

  You’ll be used to paying insurance premiums for your business premises (buildings and contents) and public liability, but what about arranging insurance to cover the person who built the organisation with you?   It’s important to think about protection for business partners to ensure you’re able to continue earning an income without the person (or people) that helped you get off the ground. Business Partnership Protection could be just what you need to bring peace of mind and a level of security for the future of your business.  

What is Business Partnership Protection?

Business Partnership Protection is a type of insurance policy which provides finance to the remaining partner(s) in a firm when another partner either dies or is unable to work due to a terminal or critical condition.  

Why do I need to arrange cover for me and my business partners?

Covering the life of a partner in your firm can help ensure your business is able to survive the loss of their input, skills, experience, and assets. If one of the partners in your firm passed away, the likelihood is their shares in your business would be inherited by their next of kin. The beneficiary(ies) might have no interest in the business and may even want to force a sale to release assets tied up in the firm. In this scenario, if you had life cover for the deceased partner, you’d have the funds available to buy the controlling interest from the beneficiary(ies) and continue to make decisions for the ongoing management of your company and staff.  

What types of cover are available for business partners?

Partnership Protection can be arranged to pay the surviving partner(s) a lump sum upon the death of another partner. The policy can also include the option to pay funds should one of the partners develop a critical illness which prevents them from working (Critical Illness Cover). This type of protection can be arranged in a variety of ways and the most suitable option for your business depends on your specific circumstances. For example:  

• If you have more than two partners in your business, then “Own Life” policies might be appropriate where each partner takes out their own policy with the benefits written in trust for the other partners.
• For firms where there are only two partners, “Life of another” is likely to be more suitable where each partner takes a policy on the life of the other.

 

How much does Business Partnership Cover cost?

The cost of protecting your business will vary depending on the level of cover you need, the age and health of the partners and how you arrange the policies. Generally speaking, premiums will be similar to standard life policies available for private individuals (the type of insurance you would arrange for yourself when you take out a mortgage), but if you don’t have a Partnership Agreement in place already, you’d need to factor in paying a solicitor to set this up for you.  

How do I arrange Business Partnership cover?

We could help. Our advisors have years of experience when it comes to finding the right protection policies for clients in a personal and professional capacity.   Kelly Flanagan and Lee Sutton are experienced protection advisors and work with clients to arrange cover suited to their individual needs.   They’ll explain Business Partnership Protection in more detail, listen to your specific situation and make a recommendation on the level of cover you need.   We don’t charge a fee for protection advice and there’s no obligation to take up the cover we recommend so it’s worth having a chat with Kelly or Lee to see how we could help. You can reach them on: 01275 370360 Or using: contact@mortgage-style.co.uk Availability and cost of cover is subject to criteria such as age, lifestyle, current health and medical history.