Do you worry about what will happen to your business if the unexpected happens? If this is the case, then you might want to investigate protecting your business.
There are a variety of protection products available which include business protection, business interruption and income protection insurance.
These policies are designed to help your business when it needs it the most and could prevent your business from struggling financially or from going under. We have looked at what some of the leading providers can offer you below.
The table below gives a quick comparison of the top UK providers for business protection insurance products.
|Company||Maximum cover||Life protection||Loss from property damage||Combined product|
|Direct Line for Business||Not stated||No||Yes||Combined|
|NFU Mutual||Not stated||Yes||No||Standalone|
|Legal & General||Not stated||Yes||No||Standalone|
|Royal London||£250,000 per year||Yes||No||Standalone|
|Markel direct||Not stated||No||Yes||Combined|
|Scottish Widows||Not stated||Yes||No||Standalone|
* The facts and figures included here come from each company’s website and were accurate at the time of writing (April 2019) but may have since changed. Also, please keep in mind these may not be apples to apples comparisons as each provider offers different solutions. This guide should be used as a starting off point for more research on your part.
Below we profile each of the companies’ services and features in a bit more detail.
Some of the features and benefits of Aviva’s business protection insurance products.
- Business protection that combines life insurance and relevant life insurance
- Key person cover for shareholders and partnerships
- Business loan protection
- Choice of life cover with or without critical illness cover
- Life insurance with employee’s family benefiting from the cover
- Choice of cover amounts and the length of term
- Increasing cover available
- Optional extras available
- Available to most business types
- Enhanced Business Protection Promise
Aviva offers business protection insurance that can incorporate both life insurance and relevant life insurance which gives the employer and employee protection and financial support if the worse happens. This includes key person cover that can protect your business from the loss of a key person such as a shareholder or business partner.
Aviva’s business protection insurance can also include business loan protection. The cover can be for either life insurance only or include critical illness too. The policy is combined to meet your needs and is flexible in terms of the optional extras and the cover amounts and length of term.
Some of the features and benefits of AIG’s business protection insurance products.
- Protection that can help businesses survive challenging circumstances
- Assistance to help buy out a co-owner
- Loan protection
- Protects against delays and the impact on profits
- Choice of insurance with or without critical illness cover
- Options available for key person protection, business loan protection, share purchase protection and partnership protection
- Policies can cover an individual or two people
- The cover can be based on fixed, decrease or increase cover
- Cover length is from 3 years up to 70 years
- Simple claims process
AIG’s business protection insurance offers businesses the protection they need to help them survive through a challenging time where the business could see a decline in sales, delay business plans or contract completion or increased recruitment costs to replace lost key personnel. This could result in a lack of confidence with the banks, suppliers may require an upfront payment and customers may go elsewhere.
AIG’s business protection insurance covers the death or illness of the owners or their employees and it differs from person protection insurance as it reflects specific business needs. They offer four products key person insurance, business loan protection, share purchase protection and partnership protection.
Some of the features and benefits of RSA’s business protection insurance products.
- Business interruption cover as part of a combined package
- Insures against the significant risk of being unable to recover from a loss
- This cover is included in the Commercial Combined insurance and Business Combined insurance
- Products tailored to SMEs or larger businesses
- Packaged with other products that complement the cover
- Includes public, employers‘ and product liability insurance
- Covers personal accident insurance
- Includes stock, money and equipment cover
- Covers building insurance
- Includes terrorism cover
RSA offers business interruption cover as part of its combined cover for Commercial Combined and Business Combined insurance to insure businesses against the significant risk that you may be unable to recover from due to a loss. Commercial Combined is designed for larger businesses and Business Combined insurance is for small to medium businesses.
RSA’s combined insurance cover is packed with insurance products to mitigate a wide variety of risks including public, employers’ and product liability insurance, personal accident insurance, buildings insurance, stock, money and equipment cover. Their comprehensive combined cover can be more cost-effective if you require all the products in the policy.
4. Direct Line for Business
Some of the features and benefits of Direct Line for Business business protection insurance products.
- Business interruption cover to keep your business trading
- Covers a loss of turnover
- Includes temporary relocation costs
- Covers damage to equipment or premises
- A valuable tool to protect your business and maintain financial stability
- Helps businesses to survive fire, flood and theft even if you cease trading for a period
- Covers all the expenses to get your business running again or continue trading
- Different to building and contents insurance as it covers the losses occurred whilst not trading
- Includes paying employees’ loss of earnings
- They guarantee to beat your new business quote or renewal premium
Direct Line for Business offers business interruption insurance which is a type of business protection insurance which covers your business for any loss of earnings resulting from an insured incident. It differs from building and contents insurance as it will pay for all expenses occurred such as relocating your business temporarily and pay your employees whilst you aren’t trading, but crucially it will cover any loss of turnover.
Direct Line for Business’ business interruption insurance provides valuable cover that could prevent your business from going under as result of an incident and it will help you maintain financial stability and provide you with the finance to continue trading where possible.
Some of the features and benefits of Zurich’s business protection insurance products.
- Business protection that covers your most valuable employees
- Covers death and critical illness
- Designed to cover a business owner or key person
- Flexible cover that can be adapted when needed
- Tailored solutions
- Choice of the level of critical illness cover
- Choice of fixed, decreasing or increasing cover
- Guaranteed premium amounts
- Free life cover whilst underwriting
- Can add children on to the policy
Zurich offers business protection insurance that is predominantly key person cover as it only includes the loss of a key member of staff if they die or are critically ill. The policy is designed to cover those who are most critical to the business such as an owner or a vital employee. The policy has to be taken out against that person and only covers the name person/s.
Zurich’s business protection insurance will pay out to the employer not the family of the person covered as it is designed to help the business continue to trade without the person either temporarily or permanently.
Some of the features and benefits of Allianz’s business protection insurance products.
- Combined cover called Complete Business
- Business interruption cover for the loss of profit or revenue
- Covers loss or damage covered by property damage
- Includes damage to specific items anywhere in the world
- Property damage, contents, computers and stock
- Employee liability cover
- Personal accident
- Commercial legal expenses
- Combined cover can be more cost-effective
- 24/7 business support which includes advice
Allianz does not offer standalone business interruption insurance but provides a complete package for businesses to cover their needs called Complete Business. This policy covers business interruption resulting from loss or damage which can from your premises or anywhere in the world. The business interruption element insures against the loss of profits or revenue.
Allianz’s Complete Business insurance also includes property damage, contents, employee liability, personal accident, theft and loss of money, and commercial legal expenses. They also include a 24/7 business support helpline and Actionline which can offer free advice to you on health and safety matters and business continuity.
Some of the features and benefits of LV=’s business protection insurance products.
- Business protection with life insurance
- Optional critical illness cover
- Protects business’ greatest assets, its people
- Covers key people and shareholders
- Can include relevant life cover for key people
- Can add shareholder and partnership protection
- Ownership protection to buy out a partner or shareholder
- Profit protection as a result of losing a key person
- Debt protection to help repay loans if a key person is lost
- Free children cover included with critical illness
LV= offers business protection insurance that includes life cover, but you can also add critical illness cover as well for added protection. Their business protection insurance is designed around the key people in your business and ensuring that your business can survive if they are unable to work.
LV= offers a range of covers as part of its business protection which can include key person insurance which covers business vital employees, shareholders and partnership protection to prevent the business being disrupted or lost as a result of an ownership share being at risk; and relevant life cover for select people so that their families receive a lump sum if they die.
8. NFU Mutual
Some of the features and benefits of NFU Mutual’s business protection insurance products.
- Protection against the loss of key people
- Choice of cover based on how your business is set up
- Optional critical illness cover
- Shareholder protection
- Partnership protection
- Helps with succession planning and mitigating against the worst happening
- Assistance in purchasing the other party’s shares in your business
- Retain control of your business
- Maintain business stability and continuity at a difficult time
- Provided in partnership with AIG
NFU Mutual offers business protection insurance in partnership with AIG in the form of two policies which are shareholder protection and partnership protection. They understand that if a business partner or shareholder dies this can have an adverse effect on the business.
NFU Mutual’s partnership or shareholder protection policies enable the remaining business owner/s to purchase the share of the business from the beneficiaries of the shareholder/partner or the person themselves if they are critically ill. This prevents the share being sold to anyone else and helps you retain control of your business as well as maintain the business’ stability and continuity at such a difficult time.
Some of the features and benefits of Covea’s business protection insurance products.
- Business interruption cover as part of Excel Business Combined
- Covers damage to your property that results in disruption
- Mitigates against a loss of profits
- Covers the increased costs of working
- Includes book debts
- Covers key employees dying or being permanently disabled
- Includes trade fairs or exhibitions
- Also covers property in transit
- Can also include liability covers – property cover and personal accident
- 24/7 helpline service
Covea provides combined business insurance that is modular so that you can select the cover you need. This offers a wide variety of business cover to choose from including business interruption, employer’s/public/product liability, property cover, goods in transit and personal accident.
Covea’s business interruption cover includes the impact of your premises being damaged and the disruption it can cause your business in terms of a loss of profits, increased business costs and the ability to repay your debts. It also covers key employees such as owners, partners or directors for death or permanent disablement and the financial loss it can cause your business.
Some of the features and benefits of HDI’s business protection insurance products.
- Property and business interruption insurance
- Designed for more industrial businesses
- Covers the damage or loss of a property
- Includes the resulting business interruption
- The cover includes fire and flood
- Offers international cover for businesses with sites abroad
- Safeguards your production capabilities
- Maintains your cash flow position and covers loss of income
- Gives you access to their risk engineers to help you reduce the risk
- The cover can also include existing weather risks for event organisers
HDI provides a combined cover for property and business interruption which is designed for larger and more industrialised businesses that have production facilities that they want to cover. They offer cover that is not only for UK premises but can also include any premises abroad as well.
HDI’s property and business interruption insurance covers for the loss or damage to a property which results in business interruption, this can include fire and flood damage. The policy protects against the financial losses that can occur whilst a site is not running, and you suffer a loss in your production capabilities and the resulting loss of income.
Some of the features and benefits of Hiscox’s business protection insurance products.
- Business interruption insurance
- Covers against the loss of income from not being able to trade
- This includes property damage such as fire, flood, vandalism or major theft
- The policy covers the impact of neighbouring properties affecting the access to your property
- Also includes the premises of a supplier if they are in the EU
- Provides cover for up to 12 months of interruption
- Covers the loss of a key person
- Covers all additional costs and expenses occurred
- A range of covers options are available and it can be added to your contents insurance
- Offers specialist cover for technology businesses
Hiscox provides business interruption insurance as a standalone product or it can be added to your contents insurance policy with them. Their business interruption insurance covers you when you are unable to trade as a result of damage to your property such as fire, flood, vandalism or major theft.
Hiscox’s business interruption cover also includes the impact of neighbourhood premises affecting the access to your business and the premises of a supplier if they are within the EU. In the event of an incident, they would provide 12 months’ worth business interruption support which would cover the cost and expenses incurred to keeping your business trading.
12. Legal & General
Some of the features and benefits of Legal & General’s business protection insurance products.
- Choice of business protection products
- Key person protection to prevent loss of profits
- Partner/Director/Limited Liability Partnership Share Protection
- Business Loan Protection
- Relevant Life Plan
- Covers death and critical illness of key people
- The business is the beneficiary except for relevant life cover
- Protects a partner or director’s share in the business
- Assists business owners when critically ill
- Demonstrates to lenders that you have a disaster recovery plan
Legal & General provides business protection insurance but they offer it as a specific cover that is tailored to certain business type or circumstances. All of their policies cover for the event of a death or critical illness (if chosen) of a key person in your business and in most cases the business is the one that receives the insurance money as the products are designed to help the business continue.
Legal & General offers key person cover, partner/director/limited liability partnership share protection, business loan protection, and relevant life plan which is where the family of the employee is the beneficiary.
13. Royal London
Some of the features and benefits of Royal London’s business protection insurance products.
- Income protection insurance
- Peace of mind for business owners
- Provides a monthly income
- Covers illness and injury
- Choice of payment periods
- Accelerated claims for terminal illness diagnosis
- Lump sum payment on death
- Can increase the cover at any point
- Additional benefits include fracture cover, hospitalisation payment and back to work payments
- Helping Hand support service for those affected
Royal London only offers business protection insurance in the form of income protection which is designed to help smaller businesses where the individual needs to protect their income in the event of illness or an injury. The cover provides a monthly income as well as peace of mind for the individual.
Royal London’s income protection cover also offers accelerated claims for those diagnosed with a terminal illness and a lump sum based on monthly premiums if the insured person dies. In addition, there are some other benefits included which are payouts for fractures, hospitalisation and back to work support.
14. Markel Direct
Some of the features and benefits of Markel direct’s business protection insurance products.
- Business interruption cover
- Plugs the gap in buildings and contents insurance
- Covers the financial losses that result from damage to your business
- Helps to keep the business afloat whilst repairs are made
- Covers the impact from a fire or flood
- Includes loss of revenue, loss of rental income and additional staff costs
- Mitigates against the loss of customers
- Minimises the financial impact on the business
- Practical insurance that gives peace of mind
- A product that should be added to another Markel policy
Markel direct does not provide standalone business interruption cover but offers it as an added on to their other business insurance products. Given that the insurance is designed to cover the gaps that building and contents insurance it would be sensible to combine it with those products.
Markel direct’s business interruption insurance covers the financial losses resulting from damage to your property such as a fire or a flood, but it does not pay for the repair (your buildings and contents insurance cover this), it covers loss of revenue, loss of rental income and additional staff costs that occur because of the incident.
Some of the features and benefits of Travelers’ business protection insurance products.
- Business interruption insurance
- Cover that is linked to property ownership only
- Bespoke products
- Covers a variety of risks
- Protection to help you to continue to operate
- Covers damage to buildings, equipment and stock
- Product caters for small businesses through to larger ones
- Peace of mind insurance that allows you to get on with your business
Travelers provide business interruption insurance to businesses that own their own premises as they appreciate that the damage to business premises can have a huge impact to the business and its not as simple as setting up in a new location.
Travelers’ business interruption insurance is available only through a broker, but their policy is suited to all business sizes and can be tailored to meet your business needs. It offers businesses the protection they need in the event of their property, equipment and stock being damaged from a variety of risks.
Some of the features and benefits of Vitality’s business protection insurance products.
- Business safeguard insurance
- Protection for your key employees and shareholders against unforeseen challenges
- Helps to guarantee longer-term stability
- Financial support when needed the most
- Life Cover for Business with or without disability cover
- Key person cover
- Shareholder or partnership protection
- Loan protection
- Relevant life cover that pays out to employee’s family
- Sole trader offering that will combine life, illness and income protection
Vitality offers a variety of business protection insurance products which include life cover for businesses with or without disability cover, key person cover, shareholder or partnership protection, loan protection and relevant life cover.
Vitality’s life cover, key person and shareholder or partnership protection offers cover based on key individuals in your business and provides financial support if they die or are critically ill. Shareholder or partnership protection that helps to buy out the person who has died share of the business. Loan protection helps pay back loans if a key person dies. Relevant life cover is a benefit for employees as their family will be the beneficiary of the policy.
17. Scottish Widows
Some of the features and benefits of Scottish Widows’ business protection insurance products.
- Business protection life cover
- Option to add critical illness cover
- Flexible and tailored plan to meet your needs
- Protects against the loss of a key person
- Covers the event of a key person dying or being critically ill
- Loan protection
- Shareholder protection
- Relevant life cover
- Free accidental death cover available whilst the application is processed
- Provide a range of free support services
Scottish Widows offers business protection insurance that is focused on the key individuals in your business that are critical to the survival of the business. They offer cover that is flexible and it is individually tailored to your business needs and you can select the cover types that you need to protect your business.
Scottish Widows’ business protection insurance is available in the following products – key person cover, loan protection, shareholder protection and relevant life. All are insurance against the life or health of a key person in the business and provide financial support to the business, except for relevant life cover which the employee’s family is the beneficiary.
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