Why it matters
Founders insure laptops and forget the person the whole business depends on. If losing you would leave your family fighting your co-founder over shares, or the company unable to trade, that's the risk to fix first.
Financial guidance
Business & family protection for sole traders
If your business would struggle to survive losing you or a co-owner, it may be worth protecting. This guide explains key-person cover, shareholder protection and relevant-life cover, and the problem each is designed to solve.
The short answer
Business protection keeps a company — and the families behind it — safe if an owner or key person dies or falls seriously ill: key-person cover replaces lost profit, shareholder protection funds a buy-out, and relevant-life cover gives directors tax-efficient personal life cover through the company. A regulated adviser structures it correctly.
The basics
In plain English
- Key-person cover — replaces profit if a vital person is lost
- Shareholder/partnership protection — funds a clean buy-out
- Relevant-life cover — tax-efficient life cover via the company
- Business loan protection
- Cross-option agreements set up alongside the cover
How to get regulated advice
If and when you want it
- 1Understand the basics
This page explains, in plain English, what this area involves — so you know the questions worth asking.
- 2Find an authorised adviser
Regulated advice can only come from an FCA-authorised firm. You can search the FCA register, or ask us for an introduction to Equity & General, the firm we have an introducer agreement with.
- 3No obligation
Any introduction is optional and free. If you go on to take advice, the adviser explains any fees before anything goes ahead.
Common questions
Straight answers
What is key-person insurance?
Cover that pays the business a lump sum if a person it depends on — often a founder — dies or becomes critically ill, giving it breathing room to recover or replace them. A regulated adviser can advise on the right level.
What is shareholder protection?
It funds the surviving owners to buy a deceased shareholder's stake from their family — so the family gets fair value and the business keeps control. Usually paired with a cross-option agreement.
Is relevant-life cover really tax-efficient?
For directors, it can provide personal life cover paid for by the company, usually as a deductible expense and without a benefit-in-kind charge. A regulated adviser confirms whether it fits your setup.
General information only. This page explains a topic in general terms. It is not advice, a personal recommendation or a financial promotion, and it does not invite or encourage you to buy any product or service. Everyone's circumstances are different.
Regulated financial advice can only be given by a firm authorised by the Financial Conduct Authority — you can find one on the FCA register (register.fca.org.uk). Buzz Accounting is not authorised to give regulated financial advice. We have an introducer agreement with Equity & General (E&G), authorised and regulated by the FCA (No. 474163); if you would like, we can introduce you — that is entirely optional and there is no obligation.
The value of investments and any income from them can fall as well as rise, and you may get back less than you invested. Your home may be repossessed if you do not keep up repayments on a mortgage. Tax treatment depends on your individual circumstances and may change. Will-writing, trusts and some estate-planning services are not regulated by the Financial Conduct Authority.
