Business protection is a crucial element in a company's financial future, but how many have cover in place?

You may have covered the tangible assets in your business, but have you protected the most important asset; the people who contribute directly to your bottom line?

If the answer is no, you could be putting your business at risk. After all, if you lost a key employee, this could impact the day-to-day running of the business, it could hit profits and create problems repaying an outstanding business loan.

Research by Legal & General in their State of the Nation’s Small and Medium Enterprises (SMEs) report has found:

52% of businesses would cease trading in under a year if a key person became critically ill or died

47% of shareholders have no arrangements for their shares if they became critically ill or died

51% of businesses have some form of business debt of an average of £175,000

Safeguarding your business
Business protection insurance can help mitigate some of the risks. There are three main types of business protection:

• Key Person Insurance
  provides a lump sum to the business on the death of an important member of the business.
• Shareholder Protection Insurance
  provides a lump sum that will allow remaining shareholders to buy the shares of a deceased shareholder.
• Business Loan Protection
  provides a lump sum to help a business pay any outstanding business loans.

Business Protection Insurance is designed to keep you trading. That's why making sure you have the right protection in place should be considered a vital part of running a business.

If you are one of the 54% of SME that doesn’t have a relationship with a financial adviser talk to us! As professional financial advisers we can help you realise any risks you may and provide protection for the future of your business.