issue:
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available to buy that share of the business back, your business could be at risk.
How Safe is Your Business? Many people think that protecting a business involves insuring the premises, the contents and the assets. That’s true – it does. But when you think about assets, are you thinking about the material assets only, or are you also thinking about the human assets within the business? It’s the people that make a business run smoothly, and without them most businesses would have a hard time functioning. Just think where your business would be if you were diagnosed with a critical illness, or died. Following the death of a key person, being unable to repay loans can be a serious problem for a business. Corporate debt is an inescapable reality of the business world and business loan protection should be considered. If you’re a partner of a small firm and one of your other partners dies, what happens to your business and their share? Who now owns that share of the business and where does that leave you? In many cases, when a director or partner dies, their share of the business passes to the family, who may not have the same interest in continuing the business that you do. And unless you have the funds immediately
Thomas Carroll Group PLC
t
029 20 86 95 31
Pendragon House, Crescent Road,
e
info@thomas-carroll.co.uk
Caerphilly CF83 1XX
w thomas-carroll.co.uk
Recognising what needs protecting and why 1 In January 2013 Legal & General conducted some research with the Institute of Directors to assess awareness and take-up of business protection amongst small to medium sized businesses. The research identified a business protection gap of £1.35 trillion (an 18% increase since 2011). Legal & General found that:
Almost 3 out of 4 business owners aged under 40 do not have any life insurance cover. For those aged 40 to 49 over 50% didn’t have any cover. 41% of business owners expected their business to fold with 18 months of the death or critical illness of a key person.
50% of businesses had unprotected corporate debt.