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How secure is your Business?

  • Writer: ALM Financial
    ALM Financial
  • Jun 2, 2020
  • 2 min read

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.

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Andrews Loynton & McCulla is a trading style of ALM Financial Limited which is an appointed representative of The Openwork Partnership, a trading style of Openwork Limited which is authorised and regulated by the Financial Conduct Authority. Registered address 49 Church Street, Portadown, Co. Armagh, BT62 3EU. Registered Number: NI701108.

 

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