A sole trader is someone who works alone. Sole traders should consider:

• Life assurance
• Critical Illness cover
• Healthcare
• Income Protection
• Retirement planning

If a sole trader employs key people in their business, then additional consideration should be given to Key Person Protection.

Partners in a business have the same requirements as a sole trader, however you should also consider the financial implications to the business and each individual if a partner were to suffer a::

• Sickness or injury
• Critical illness
• Death

On the death of a partner, their share will pass to their estate and technically the partnership will be dissolved.

A partnership agreement can prevent this. It is often in the remaining partner’s best interest to buy the deceased’s share. This means that they need a Partnership Assurance Protection plan in place.

Just like a partnership, a Limited company’s shareholders need to protect against the death or critical illness of a shareholder. A shareholder protection plan can provide financial security to joint owners of a business in the event of a shareholder’s death or critical illness.

Life Insurance

A business agreement can be put in place, that in the event of one shareholder’s death the proceeds of a life insurance plan can be paid to the remaining shareholders. These funds are used to pay for the deceased shareholder’s interest in the business from his or her estate.

This means the shares remain within the company, but the beneficiaries of the deceased shareholder, receive the monetary value of those shares.

Critical Illness Protection

Business partners can protect their business, should one partner be diagnosed with a critical illness. Critical illness protection can provide a lump sum on diagnosis of a specified critical illness, to be paid to the partner who is unwell. They would then give their business partner their interest in the business. Downton & Ali Associates can help you evaluate your business needs and create a comprehensive plan to protect the interest of all parties.

Key person insurance protects a business should it lose a person who makes a significant contribution towards the profitability of a company. In general, a ‘key person’ is determined by the individual’s death resulting in a significant reduction in profit, because of the impact on business continuity, while new measures are put in place. Key person insurance must be owned by the business, not an individual.

Downton & Ali Associates business consultants can help you evaluate your company’s business needs and arrange a comprehensive plan to help protect the shareholders and key person/s within your organisation.

We have access to some of the best-known insurers for commercial insurance. Whether you need to insure your premises and stock, need employer’s liability, public liability insurance or indemnity cover, Brian Downton of Downton and Ali is Dartford’s Protection Champion. We can help you evaluate your company’s business protection needs and arrange an insurance policy that meets your needs.

Downton & Ali Associates business consultants can help you evaluate your company’s business needs and arrange an insurance policy that suits your needs.

Our referral Partner for Group Medical Insurance is VITALITY Health.

As well as protecting your employees when they are unwell, it also helps them lead a healthier life. This means that they don’t have to claim to benefit.

Find out more by calling Brian Downton, Dartford’s Protection Champion on 020 3021 0075 or email us at brian@downtonandail.co.uk.