Pembroke Wealth Management: 
Business Protection
This type of cover involves protecting your business from the adverse financial effects of the death of a key person, partner or shareholder.
Business protection can be especially important to smaller companies whose reliance on key individuals for profit may be greater than large corporate entities.
There are three main types of business assurance - Key man, Partnership Assurance and Director Share Purchase cover.
Key Man
...is used to inject a lump sum of cash into the business in the event of the loss of a 'key person'. A key person may be say a top salesman, or a key designer in a design company - someone whose death would have a direct and adverse effect on the companies income and therefore profitability. The usual solution is a Term Assurance policy whose sum assured should be worked out in conjunction with your financial adviser.
Partnership / Director Share Purchase
...deals with protecting the families of Directors and co-owners of the business in the event of the death of one of the partners / directors. Each party agrees before hand the value of his or her share and a combination of Term assurance policies and legal documents are put in place.
This ensures in the event of a partner or shareholders death, that the remaining co-owners have a sum of money in place which will enable them to 'buy out' the family of the deceased for a fair sum.
For more information or guidance on Business Cover, please contact us.