Protecting your Business
If you are responsible for running your own business or a director of a company, in a senior position, you will want to make sure your business is protected against a number of key risks.
This video explores some of those risks and how you can put in place effective plans to deal with them.
The background to all of this is no-one has a crystal ball and we cannot know what lies in the future.
The question for owners and directors in business has to be’ what happens if?”
For example, what happens if you become seriously ill? Or one of your key team becomes seriously ill?
Or, worse still, if someone dies?
What will happen to the Business, how will it be affected?
Most of us will be used to taking out insurance in other walks of life. We must have car insurance by law. If we have a house, we will almost certainly have house insurance. Most people who travel have travel insurance.
But very few businesses have business protection, which are insurances to cover serious risks to the people in the business.
Yet, owners, directors and employees of businesses do get ill and some, unfortunately, do die whilst in the business.
The impact of either can be devastating and can threaten the viability of the business. It can ruin your life’s work.
This is something that can be risk-managed in advance.
The answer lies in having structured Business Protection.
This describes the various insurance plans you can take out which will counter the risks.
A starting point is to look at the debts and borrowings of your business. These can be insured by taking out Business Loan Protection. If you have a home mortgage on your house, you will probably have life assurance alongside.
Business Loan Protection is a similar concept, the Business pays a premium to have insurance which pays off any loans, should the owner become critically ill or die. It can also be used to cover any director’s guarantees. Many loans will be subject to such a personal guarantee.
Whether you include critical illness cover or not will be down to individual circumstances, but you should always consider this option.
If you have a Business with more than one shareholder, or in the case of a partnership, more than one partner, then you will want to look at Shareholder Protection Plans or Partnership Protection Plans.
These plans work to get money into the business or into the hands of the other shareholders (or partners) in the event of the loss of one of the parties.
This is a particularly important insurance as it may protect the value of the shareholder or partnership share, as well as the family of the individual.
Without this insurance Businesses can be very vulnerable, the remaining parties can lose control of the business or struggle to buyout the shares from the deceased’s family which could leave all parties dissatisfied.
Key Person Protection is insurance which provides cover should a key person be lost to the business.
In the modern economy people are commonly the biggest asset, whereas one hundred years ago it was machinery.
Research shows how big an impact losing a key individual can be, with businesses under serious threat of even being able to continue if this occurs.
The insurance, which again could be life assurance and critical illness cover, is taken out by the Business on any person who is considered to be valuable to the point where the loss would cause financial difficulties.
In this event the insurance would pay-out should one of them die or suffer a critical illness and the business would receive a financial lump sum in compensation.
Business Protection extends to cover other factors and aspects.
This includes Private Medical Insurance, which can be arranged through the business to pay for team members facing medical costs or needing private healthcare. This could be important to get someone back to work quicker than otherwise might be the case.
Income Protection Plans are another option, these are different to critical illness plans, as they insure someone’s income against being off work for a lengthy period for a variety of reasons, for example with back problems.
And finally, if you are in business on your own account and run a company you may be able to arrange your life insurance through a Relevant Life Policy. This is where the Company pays the cost of the Insurance, but the pay-out goes directly to the individual or the family of the individual.
Switching the cost or the expense of the life cover from the individual to the Company can create a significant overall tax saving. Anyone who currently pays for their own life insurance from their own bank account and has a limited company should be aware of this and investigate this further.
You will gather by now that Business Protection covers many risks, to the business, its owners and those who work within it.
In every case it is possible to manage those risks. The way to do this will be down to circumstances and solutions can vary from situation to situation.
This really is an area where getting expert help and advice can make a big difference. We have the expertise and are here to help you find the right solutions for you and your business.
What our Clients say
Alan has the ability to listen and care about people
We first met Alan in 1999; we both wished that we
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It has been almost ten years now since David and myself first consulted you for advice and guidance on financial matters, so I feel that it's time that I wrote to thank you for the help and assistance that has always been forthcoming. Shortly after we had moved house in 1992, you advised us to switch from one type of mortgage to another, which turned out to be the most successful financial move we had made in years. Over the years we contacted you for financial advice and guidance when our daughter was heading for University, on taking out life and house assurance policies and general financial overhauls. Your recommendations have always been sound and given in a manner both efficient and friendly, none more so than when I was widowed just over two years ago and needed a considerable amount of help, immediately given upon request and with great sensitivity during what was a very difficult time for me. There is little I can add, except to also thank the rest of your staff, friendly voices at the end of the telephone who take and pass on my enquiries and ensure that I always receive a fast and efficient response. I can recommend, without reservation, Interface Financial Planning Limited.
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A very special and caring person
Alan - A very special and caring person, who it's been a pleasure to meet - thank you again it's been a privilege and honour, your kindness has been second to none and we know you've helped probably more than you should but I can assure you it was all very much appreciated, more than you know.
Bill & Sue Ralph, Oldbury, West Midlands
Advice that has been invaluable
Alan has been our financial adviser for 5 years. He is professional, well informed and reliable, and his advice has been invaluable to us. He and his staff are courteous and efficient, and we have no hesitation in approaching him for advice on any aspect of our finances, or in recommending him to relatives, friends and colleagues.
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Alan Moran has acted on our behalf for over 10 years. Alan has over this time always listened to our requirements and fed back to us the best options, given our constraints and made very useful alternatives suggestions. He has always been friendly and considerate. I would not now consider making any financial investment or savings decision without first consulting him.
Ian & Joyce Miller, Birmingham
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Alan has acted as our family Financial Adviser for many years. He is honest, non-pushy and always takes the time to explain everything thoroughly as often as needed. Alan is not only our Financial Adviser but we regard him as our friend. We would have no hesitation in recommending him and his staff to anyone who needs a Financial Adviser they can trust.
Malcolm & Sylvia Smith, Perry Barr, Birmingham
Alan's sound advice has improved my life no end.
I was introduced to Alan Moran in 1999. I was juggling my finances just to keep afloat and was wary of taking outside advice. A close friend of mine recommended Alan as a reliable and honest adviser who would take great care in choosing the right path to get my financial affairs on track. Trusting their judgement, I arranged to meet Alan. I was treated with the utmost care, given time to consider the guidance that Alan provided and never pushed into taking on financial services. Meeting Alan and acting upon his sound advice has improved my life no end. Even on a limited income, prudent planning has enabled me to save for annual holidays and even cope with the occasional unexpected expense as well as keep up to date with all of my bills. I count Alan among my friends and have recommended him to both my sister and my parents. He really is the genuine article and I cannot thank him enough for all he did for me.
Zena Davis, Coventry
Alan's knowledge of financial matters is very comprehensive
Alan was introduced to me by a friend at the time when my finances were a mess and I just didn't know what to do for the best. Calmly, kindly and sympathetically Alan sorted everything out. Since then he and his wonderful team have sorted out my house and car insurances, my son's mortgage and pension plan and, last but not least, guided me through the ramifications of buying a property in Spain. I have recommended him to friends, as his knowledge of financial matters is very comprehensive and sound. Alan is able to offer advice without making the recipient feel a complete idiot and he takes time to explain things thoroughly and in a way that is understandable.
Tricia Adams, Cannock, Staffordshire
Alan's sound advice has improved my life no end.
I have been a client of Alan Moran's for 12 years and during that time he has given me valuable advice on all aspects of finance. He always explains everything thoroughly and has been particularly supportive during periods of crisis in my life. He helped my late husband and I when his business went into liquidation and was even more valuable when my husband died, pointing me in the right direction with my finances and getting me to invest my money sensibly and with the just rewards that I am now experiencing. I regard Alan not only as my Financial Adviser, but also as my friend, and would, and in fact have, recommended Interface Financial Planning Services to anyone needing a Financial Adviser they can trust.
Marian Poolley, Sutton Coldfield
Efficient and reliable in terms of financial decision making
Alan Moran has been our independent financial adviser for a number of years. He has proven to be an efficient and reliable person to guide us in terms of financial decision making with regard to planning and management of current and future economic matters. He is friendly, discreet, careful and always courteous.
Chris & Tony Hampton, Halesowen
Highly professional, friendly and supportive approach
We have been clients of Alan Moran (Interface Financial Planning Ltd) for over five years. In this time, his highly professional, friendly and supportive approach has provided us with a thorough review of all aspects of our finances. We are now in a position where both our short term and long term financial planning is well organised and structured to suit our personal needs. We have recommended Alan and his team to many of our friends and know that they, like us, have been impressed and grateful for the care he has taken to provide such individual service.
Ann & Allan Rowlands, Handsworth Wood, Birmingham
Professional and friendly manner
Just dropping you a line to say thank you for all the help you've provided us throughout the purchase of our house and the investment policies you've recommended us. May we both thank you for the very professional and friendly way, in which you handled our business, and look forward to hearing from you in the future.
John Fletcher & Linda Davis, Bromsgrove
Wouldn't hesitate to recommend
We were recommended to Alan by my brother in law and have been very pleased with his advice and assistance. Since using his services, we have organised our Wills, Pensions and re-jigged our finances, and now would not consider making any financial investment or savings decision without first contacting him! We would have no hesitation in recommending his services to anyone requiring sound independent financial advice.
Richard Salaman & Emma Staples, Surrey
Valuable advice on our mortgage, future planning, savings and pension investments.
Seeking financial advice for the first time, I received details of three local IFAs. However, these cold statistics gave no idea of the actual person to whom I would need to entrust confidential information. Sometime later I came across an article in a local paper by Alan (Moran) in which the writer came over as friendly and trustworthy as well as being a qualified IFA. Having contacted Interface Financial Planning, the result has been a friendly relationship and valuable advice on our mortgage, future planning, savings and pension investments.
Mike & Gloria Nash, Great Barr, Birmingham
I have never had a single financial concern
The best thing financially that I ever did when I contacted Alan. I have never had a single financial concern and he has supported me through difficult times including the death of my dear wife.
Norman Howell, Birmingham
“Don’t put off the planning for your financial future as you are
never aware of what lies around the corner”
We first met Alan in 1999; we both wished that we
It was very important to gain financial advice in such a challenging time after my wife passed away. I needed to ensure that, as a newly single parent, I had got my finances sorted out and had also made provision for my children in case anything happened to me. As neither my wife or myself had made a will, Alan’s advice and guidance through this very difficult period was invaluable, especially dealing with the paperwork associated with this.
Paul from Birmingham
“Alan, was immediately empathetic, encouraging and, above all, practical and straightforward”
I realised that I had been operating both my general and particularly financial affairs reactively for far too long and it was time I behaved like a grown up. So I started to think about how I might achieve some sort of practical stasis. Alan, was immediately empathetic, encouraging a nd, above all, practical and straightforward. I hadn’t consciously taken financial advice before, but came to realise that the various salesmen who had sold me policies and pension upgrades were not motivated in the same way a ‘proper’ financial adviser was (or should be). Consequently, I had taken on commitments that weren’t necessarily in my best interests. Alan is genuinely interested in my circumstances, and owns a readiness to go beyond what I had imagined would be the boundaries of the role.
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