Business protection · Fareham
Business protection advice in Fareham
What would happen to your business if a key person, or a fellow owner, died or became seriously ill? We help business owners in and around Fareham think it through and put the right cover in place, explained in plain English.
Who this helps
Companies with more than one owner
If a shareholder or partner died, would the others be able to buy their share? Would their family want to sell?
Businesses that rely on key people
One person's skills, contacts or know-how might drive a big part of your profits. Losing them, even for a while, could hit hard.
Directors looking at their own cover
You'd like life cover for yourself or your team, paid for by the business.
What business protection usually covers
- Key person cover: pays the business a lump sum if someone vital to it dies or, depending on the policy, becomes seriously ill. It can help cover lost profits, recruitment costs or loan repayments.
- Shareholder or partnership protection: gives the remaining owners money to buy the share of an owner who dies or becomes seriously ill, so control of the business stays with the remaining owners and the family can be paid for the share. It usually works alongside a legal agreement between the owners, drawn up by a solicitor.
- Relevant life cover: life cover for a director or employee, paid for by the business, that pays out to their family.
- Business loan protection: helps repay business loans if a key person or guarantor dies or becomes seriously ill.
Shareholder agreements and the legal agreements that go with shareholder protection are legal documents. We don't draft them. Your solicitor would. We're happy to work with your solicitor and accountant so everything fits together.
How it works
First meeting
A free, no obligation conversation about your business, who it depends on and what you'd like to protect. See what to expect at your first meeting.
Your recommendation
If you'd like to go ahead, we'd meet and go through your full details first: how the business is owned, who it relies on, any loans and what you'd want to happen. We then research cover from a range of insurers and set out our recommendation in writing.
Reviews
Businesses change. As you grow, take on new owners or borrow more, we can review whether your cover still fits.
What it costs
Your first meeting is free. For protection, you can choose to pay us a fee, or we can be paid a commission by the insurer, which is a percentage of the premium. We'll always tell you which, and how much, before you go ahead. Costs will be agreed with you before any work starts.
Questions people ask
What is key person insurance?
It's a policy the business takes out on someone whose loss would seriously affect it, such as a founder, top salesperson or technical expert. If they die, or become seriously ill if the policy includes that, it pays a lump sum to the business to help it cope.
How does shareholder protection work?
Each owner is covered by a policy, usually written in trust. If one owner dies or becomes seriously ill, the payout gives the others the money to buy their share. A legal agreement between the owners, drawn up by a solicitor, sets out how the sale works.
What is relevant life cover?
It's individual life cover for a director or employee, paid for by the business. It pays out, usually through a trust, to the person's family if they die while in your employment. It can be an option for smaller businesses that don't have a group death in service scheme.
Who pays, and how is it taxed?
The business usually pays the premiums. How the premiums and any payout are taxed depends on the type of cover and your circumstances, so we'll talk it through with you and your accountant.
- Fareham
- Portchester
- Titchfield
- Stubbington
- Hill Head
- Lee-on-the-Solent
- Gosport
- Locks Heath
- Park Gate
- Warsash
- Sarisbury
- Whiteley
- Hedge End
- Botley
- Curdridge
- Shedfield
- Wickham
- Bishop's Waltham
- Portsmouth
- Hayling Island
This page is general information, not personal advice.
Protection policies have no cash in value at any time. If you stop paying the premiums, your cover will end. Cover is subject to the terms and conditions of the policy, and the insurer's acceptance.
Tax treatment depends on individual circumstances and may change in the future.
The Financial Conduct Authority does not regulate tax planning or trusts. Shareholder and partnership agreements are legal documents and should be drawn up by a solicitor.