Business loan protection is designed to provide a business with the funds to repay commercial loans or mortgages should one of the business owners suffer a critical illness or death.
You can protect the full value of the loan or mortgage and payment is usually made to the business.
It is essentially a life-insurance policy with critical illness included, specifically designed to cover business loans and commercial mortgages.
Insurance for your building is often considered a ‘must have’ but many risks are less obvious and should seriously be considered as your business grows and develops. Business protections policies tend to be considered under financial services rather than insurance as they are designed to cover the loss of personnel or monies – similar to a life insurance policy and includes shareholder protection, loan protection and key person cover.
Alan Boswell Group can provide advice on the full suite of business protection policies available to you and your business.
If a business owner dies, or suffers a severe or critical illness, lenders may have the right to demand that any loans or mortgages are paid back. This could represent a significant risk to business continuity and so it may be wise to protect the business by putting in place a business loan protection policy.
Similar to a personal life insurance policy it is designed to pay out to the value of the loan providing the company with the funds to repay the loan.
It can be used to settle loans made by the business owners to the business, not just from established lenders, such as banks.
Considering that some business loans may include personal liability this is a crucial insurance to protect individual directors from any potential loss
If there is one thing businesses can learn from the coronavirus crisis it is the importance of having a robust disaster recovery and business continuity plan (BCP) in place. We consider what goes in to a BCP.