Operating a business is really hard and you must protect your hard work through an adequate business insurance. When you run a business, you must cover your business and protect yourself from maximum emergencies and eventualities. A business insurance helps you in this endeavor. But choosing a business insurance policy is not even a bit easier than running a business. You have to think of what should be your priorities and where should you look for a business insurance. That is where we help you owing to our experience in business insurance. Owing to an expert team of business insurance advisors, cheapbusinessinsurance.net helps you take the right business insurance decision.

A business life insurance offers perpetuity to your business and makes sure that business keeps on running even if something happens to your employees, partners or you. Just like life insurance, a business life insurance prepares a business to take financial responsibilities in case something goes haywire. A business insurance policy makes a business prepared about eventualities and minimizes risk. There are multiple kinds of business life insurance, including:

A key person insurance policy ensures that your business does not suffer if something happens to the person on whom the performance relies the most. It can be you, your top performing sales employee or your office manager who takes care of various duties. The term ‘key person’ if offered to the person without whom a business cannot function.

Identifying a key person is important and crucial. You need to find out what would happen to business operation if that person is unable to function because of illness. Would you be able to cope up? If not, he/she is your key person. And as a key person also expects an income from a business even during distress, safeguarding him becomes more crucial.

Key person insurance prepares you for this emergency and the policy covers the life of the key person. A business pays and owns the key person insurance policy and benefits from the situation where the key person becomes unavailable for your business. Policy premiums are determined on the basis of importance of the key person and profitability he/she generates for the business.

The proceeds from claims of a key person insurance can be invested to recruit or train new staff, covering losses in profits or for easing the cash flow.

A relevant life cover is a great alternative to group life insurance scheme for a small business. It offers a tax-efficient way to offer death-in-service benefits to staff members and their families for businesses with less than five employees. Using relevant life cover, you can add value to the life of your employees and start a benefits package that will help in employee retention and talent recruitment.

Relevant life cover is a great way to save tax and can be claimed as a business expense. The taxman does not classify premium payment as the benefit in kind and saves the employees from paying income tax on it. Also, as the policy is written ‘in trust’, it offers protection from payment of inheritance tax.

Claims for relevant life cover can be made when a person passes away or suffers from the terminal illness. An employee can take away the policy with him/her in case he leaves the business but he/she cannot claim any benefit on surrendering the policy because there is no surrender value.

Business loan protection

A business loan protection covers your business in case you need to pay for the business loan on a short notice. What would you do if lenders demand loan payment and your business loses revenue due to unavailability of a key person, director or shareholder? Such emergencies are unpredictable and in case of sudden illness or death, the situation can become volatile.

Business loan protection covers different types of loans and debts including director’s loans, commercial loans, mortgages, venture capital loan, credit card, personal guarantee and even overdrafts. Such policy can be taken for business owners as well as employees up to the amount of debt. Also, the policy can be customized and tailored to reflect the terms of borrowing agreement with the help of your insurance firm or agent. Also, such policy can be used to cover a business owner’s life and in case of death or illness, the policy offers a lump sum to cover loans and other business debts.

When you run a business in a partnership or have shareholders on board, you need to prepare for contingencies in case one of the partner/ shareholders passes away. In case of their sudden death, their dependents might claim a lump sum payment in lieu of their share in a business. But not every time the business has the cash flow to honor such a demand. In that case, you might have to sell shares reducing your stake and control on your own business.

Ownership protection helps you protect your ownership claim on the business. Such a protection enables the remaining partners/shareholders to buy up the deceased partner’s shares in the company. There are multiple ownership protection options for you to choose from- company shares purchase protection, limited liability protection, shareholder protection and partnership protection

In an ownership protection, the controlling shareholders or partners take a policy in accordance with the value of shares they possess. A plan if formalized that outlines how the shares would be valued including the option to purchase remaining shares and the option to sell the shares to deceased’s dependents.

Benefits are important to make employees feel special and connected to your business as a valuable asset. They do not serve as a luxury but as an important essential. Using employee benefits such as life insurance cover, critical illness cover and income replacement, you can attract the best talent in the industry. Also, it shows a business’ seriousness towards taking care of valuable manpower.

Employee benefits can help employees and their families significantly in case of some emergency. Such a benefit protects an employee financially and provides them replacement income or lump sum amount. Also, insurance providers can provide a variety of support services to assist an employee in recovery and rehabilitation. Such benefits help an employee in preventing illness and also provide legal guidance regarding life cover, critical illness, and income replacement.

Experts at cheap business insurance understand that standard policies with ‘one size fits all’ solution do not work in dynamic environment. They provide relevant advice and guidance to provide unique coverage based on the different job roles. A business pay up for the policy with standard rates for three years making budgeting easier. Also, premiums for such policies can be adjusted against business profits based on the type of insurance policy. These policies also eliminate the need for medical underwriting making it easier for an employee as well as a business to answer the medical requirements.