Business insurance and your employees

By CoverMyBubble

09 Jul 2021

When you see business insurance mentioned, you may automatically think of buildings, landlords, commercial or liability insurance. As a personal protection insurance broker, when we speak about business insurance (business protection), we mean protecting your employees, directors and shareholders.

Whether you are interested in providing a benefit to your staff, protecting your business or preparing for unexpected changes, there is a product for you.

Who needs business protection?

You could be a micro business, small business or medium to large firm. Plus, you may have anything from 2 - 1000’s of employees, shareholders or directors.

If your business cares for its employees or is concerned about the loss of income to the company, then one form of business insurance will suit your needs.

Example:

You are a small business of 5-10 employees, 2 directors and shareholders. One of you brings in the majority of the new business, they always have the next ‘sale’ lined up. You rely on them each month to keep the business coming and provide work for most of the team. Then, with no warning, that person passes away. Obviously, the team is devastated and it will last for a while. But when you think about their position and what happens to their family and within the company moving forward, you start to realise there are other considerations.

Your options could have been -

Relevant Life - You pay their life insurance and their family get the payout Keyperson - You pay the policy and the business gets a payout to recruit, employ and train a replacement Shareholder - If they were one, shares switch easily between the board preventing distress

Which business insurance do I need?

There are a number of personal insurance products for business protection that we can provide:

Relevant Life

Similar to a life insurance policy, the premiums are paid by the company but the lump sum pays out to the family of the employee, a nominated charity or a financial dependant. The amount that can be paid out is usually between 3 or 10 times the employee’s salary. A great employee benefit and can be a significant tax saving for a business.

Keyperson (Keyman) Insurance

A policy that can cover the business for any potential lost profits, loan repayments or recruitment costs of a new staff member or director who is crucial to the company. It’s a business expense, meaning the business pays for the premiums and they will benefit from a payout if there was a claim.

Businesses generally will choose their key members of staff that bring in a large amount of revenue into the business so this could be their top salesperson, a director, etc. When working out how much cover the business may need for an employee, generally others insure their employees for 2x the gross profit they bring in OR 5x the net profit they generate.

Shareholder Insurance

A policy to protect the business and allow other shareholders to buy shares from each other, should a shareholder pass away or be unable to work due to death, serious illness or injury. It can create a financial safety net for the business and allow for a smooth transfer process in the unfortunate event of a shareholder dying.

‘Business’ Insurance

If you do wish to protect your business for events out of your control, like floods, fire, theft, and accidents with employees or the public, we would appreciate the opportunity to introduce you to our experienced partner. A friend of the business and independent insurance broker who is highly recommended.

How can an Insurance Broker help?

When you are ready to discuss your options and are looking at investing in an insurance policy for your business and staff, an experienced insurance broker can walk you through the process. They will get to know your business better and chat through what may be best for you as the owner, the business itself and your staff.

Get in Touch

Want to get a free quote, feel free to contact us through our enquiry form, email ([email protected]) or phone us on 01254 460880

Enjoyed this? Read more from CoverMyBubble

Latest news

1

Preston frozen dough brand has new celebrity shareholders Ant and Dec and Amy and Chris Cheadle

Preston frozen dough brand has new celebrity shareholders

18 Jul 2025

2

Wellbeing focused co-working space with its own pub in Burnley gets ready for launch Dave Scholes and Malcolm Ireland

Wellbeing focused co-working space with its own pub in Burnley gets ready for launch

18 Jul 2025

3

UK's pioneering Combat Air Flying Demonstrator is revealed Flying Combat Air Demonstrator

UK's pioneering Combat Air Flying Demonstrator is revealed

17 Jul 2025

4

A fresh brew for The Printed Cup Company The Printed Cup Company

A fresh brew for The Printed Cup Company

17 Jul 2025

5

Joe Diston from Beever and Struthers appointed to new Global IFRS leader for HLB International Joe Diston

Joe Diston from Beever and Struthers appointed to new Global IFRS leader for HLB International

17 Jul 2025

Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
Lancashire Built Environment Conference 2025
BEC 315 X 315 Px
Networking
25 Sep 2025

Lancashire Built Environment Conference 2025

Blackpool Football Club, Blackpool, FY1 6HX

08:30 - 13:00

CMI Level 5 Management and Leadership Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Management and Leadership Course

Preston Campus, Preston , PR1 2HE

09:00 - 17:00

CMI Level 5 Project Management Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Project Management Course

Preston Campus, Preston, PR1 2HE

08:00 - 17:00

Preston Tech Connection: Web3 is Dead. Or is It?
July Longer Banner.jpg.jpg
LBV Hub Networking
29 Jul 2025 - 29 Jul 2025

Preston Tech Connection: Web3 is Dead. Or is It?

Society1, Coworking Space, Preston, PR1 3LT

18:00 - 19:30

Preston Freelancer Meet-Up: July
Longer July Banner.jpg.jpg
LBV Hub Networking
31 Jul 2025 - 31 Jul 2025

Preston Freelancer Meet-Up: July

Society1, Coworking Space, Preston, PR1 3LT

10:00 - 11:30

Advantage: AI – A Workshop for Business Leaders – August 14th
Navy--Event Tile.png.png
LBV Hub Seminars
14 Aug 2025 - 14 Aug 2025

Advantage: AI – A Workshop for Business Leaders – August 14th

Door4 Office, Burnley Wharf, Burnley, BB11 1JG

09:00 - 12:00

The Business Network Central & East Lancashire
LBV Header (24).png.png
LBV Hub Networking
21 Aug 2025 - 21 Aug 2025

The Business Network Central & East Lancashire

Mytton Fold, Langho, BB6 8AB

11:30 - 14:15

Morecambe Bay Walk
Walk.jpg.jpg
LBV Hub Awards
30 Aug 2025 - 30 Aug 2025

Morecambe Bay Walk

Arnside, CARNFORTH, LA5

09:30 - 14:00

Cumbria Business Expo 2025
https---cdn.evbuc.com-images-880461633-4862066883-1-original.20241022-110415.jpeg.jpg
LBV Hub Exhibitions
19 Sep 2025 - 19 Sep 2025

Cumbria Business Expo 2025

Carlisle Racecourse, Carlisle, CA2 4TS

09:00 - 15:00

Help to grow management course
Help to grow - barriers to growth.png.png
LBV Hub Seminars
26 Sep 2025 - 16 Dec 2025

Help to grow management course

Preston Campus , Preston , PR1 2HE

09:00 - 15:00

North West Business Expo 2025
https---cdn.evbuc.com-images-880456273-4862066883-1-original.20241022-105445.jpeg.jpg
LBV Hub Exhibitions
24 Oct 2025 - 24 Oct 2025

North West Business Expo 2025

Bolton Stadium Hotel, Bolton, BL6 6SF

09:00 - 15:00

Lancashire Business Day 2025
241122lbvlancashiredaylhp0647web
Networking
27 Nov 2025

Lancashire Business Day 2025

Burnley FC , Burnley, BB10 4BX

12:00 - 17:00

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more LBV122 Online Graphic
Subscribe now

Weekly news bulletin