Business protection

Is a key person all that’s keeping your business in the black?

Many small businesses rely on a few individuals who do a number of roles. The loss of any one of them could be a real threat to the continuity of their business.

Key person cover provides a lump sum to the business if a key person suffers a serious illness or dies. The cash could give a lifeline to ensure loans are repaid, maintain cashflow and fund the replacement of key staff.

Research carried out by Legal & General in 2013 showed 1 in 10 business owners would stop trading straight away and 61% said they would encounter serious difficulty if they lost a key person.

Have you identified the key people to your business? Do you know how your business would cope if you lost them?

Don’t let the loss of a key person put your business at risk – talk to the advisers at Hine Financial about key person cover.

Who would be pulling the strings if your business partner died?

If your business partner was too ill to work or died suddenly, you’d want to make sure that their shares ended up in the right hands.

Without the capital to buy the shares off them, you could find yourself working with whoever inherits them, or with anyone they decide to sell them to. Either way, if they had a majority shareholding, it could mean an unknown boss calling the shots. And that’s not exactly what you signed up for.

By putting shareholder protection in place, you could make sure the business gets the funds to buy back the shares from a critically ill partner or their estate.

So do the right thing for your partners, the business and yourself – talk to the advisers at Hine Financial about shareholder protection.

It’s a plan that everyone benefits from:

  • The remaining partners keep control of their business
  • The affected partner, or their estate, gets fair value for selling their share of the business
  • Using an appropriate agreement can ensure any transactions are tax efficient


If you haven’t already put a qualifying scheme in place, you will know it is fast approaching. Planning for Auto-Enrolment and setting your scheme up takes time and we can only help those who give us enough time.

Speak to our advisers who can help you:

  • Understand exactly what you need to do before your staging date
  • Set up a qualifying pension scheme
  • Guide you on meeting your ongoing duties once your scheme is in place
  • Take as much of the implementation off your hands as they can
  • Avoid fines for non-compliance

To find out more about how we can help you, talk to the experienced professionals at Hine Financial on 0161 438 0022.

Andy Guy
Andy Guy

Hi there! I'm Andy, I'm the Head of Charity and Faith Insurance at Hine Insurance with over 30 years experience.

In my spare time, I'm a trustee of a church and I enjoy walking and getting to grips with the garden.

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