Why Business Protection?

Running a business can be challenging enough without unforeseen events causing disruption or putting business viability at risk. Research has found that more than 50% of small to medium businesses believe they would have to stop trading in less than a year after the death or critical illness of a key individual. While no one can predict the future, E&G Business Protection is here to help your company
continue to flourish should the business owner, a director or key employee suddenly become critically ill or pass away.

What is Business Protection?

The two key things that help a business flourish are certainty and stability. With E&G Business Protection you can make provisions to ensure your company is not compromised in the event of you or a key member of staff suddenly becoming permanently unable to participate in the business.

Why is Business Protection important?

It’s every business owner’s wish that they and their key personnel are always fit, healthy and available to work but life has the cruel habit of delivering surprises that can disrupt business activity - from serious or terminal illness to sudden death. Every business must be ready to deal with the consequences of such unforeseen events and that’s where E&G Business Protection plays a vital role.

Potential Impact from Unforseen Events

When the company owner or a key member of staff suddenly becomes absent from the business, there can be potentially serious consequences that include the following -

• Reduced Productivity
• Reduced Income
• Loss of Profits
• Reputational Damage
• Negative Impact on Staff Morale
• Loss of Control of the Business
• Eventual Business Closure

Key Person Protection

Our Key Person Protection helps safeguard the company against the financial impact of death, terminal illness where life expectancy is less than 12 months, or a specified critical illness of a key person*. Proceeds are paid directly to the business to help replace the key person and to cover any profit loss.

Shareholder Protection Insurance

If a shareholder in your private limited company, member of your Limited Liability Partnership (LLP) or a partner in your partnership were to die, could you

afford to purchase their share of the business? If not, there could be significant implications for the future of your business. E&G Shareholder Protection helps you protect ownership of the business.

Share Protection

A share protection arrangement enables the surviving owners to purchase the deceased owner’s share of the business from the deceased owner’s estate and ensures that the deceased owner’s dependants have a known and willing buyer and cash instead of retaining a share of the business.

How does Share Protection work?

In the event of a business owner dying or being diagnosed with a terminal illness (life expectancy less than 12 months) or a specified critical illness*, share protection can provide a lump sum to the remaining business owners. This means that if a valid claim is made during the life of the policy, the lump sum could be used to help purchase the deceased partner, shareholding director, or member’s interest in the business.

*if chosen at the outset and at extra cost

Help & Information

If you would like further information on how E&G Business Protection could help you, please call us on 020 8396 0486 or email us at cds@eandgfs.com.