Most business owners won’t operate without some sort of insurance in place. However all too often, business owners purchase the most common policies, without considering the less discussed risks. There are insurance policies today to cover most things, some will be more relevant to your business than others. The key to ensuring you are adequately protected, is to be aware of the most prevalent risks to your business and seek out the insurance policies that will be most effective in covering these risks.
Partnership Protection Insurance is a lesser-known policy in the insurance market, however it can be one of the best policies to protect SME businesses.
What is Partnership Protection Insurance?
If your business relies on one or more partners to operate, Partnership Protection Insurance can ensure that it continues to run, should the worst happen.
Partnership Protection Insurance provides financial protection in the event that one of the business partners suffers a serious illness, becomes permanently disabled or dies.
The cover provides the financial means for other partner(s) to buy the share of the business from either the person who has inherited it, in the case of death, or from the original partner if they suffer a serious illness or become disabled.
Why is Partnership Protection Insurance So Important?
No one likes to think of the possibility of illness, disablement or death affecting themselves, or one of their partners. However, no one knows what is round the corner, and it’s vital to have a plan in place. With Partnership Protection Insurance, you can ensure your business will continue to run should the worst happen, so that you can keep generating income that will assist the families of all partners.
Partnership Protection Insurance may or may not be relevant for your business, but it may be a consideration. Ask yourself the following questions, to see if it is something that you should look in to further:
- Would your business survive if one of the partners in your business became disabled, ill or passed away?
- Who would inherit each business partner’s shares, if they were to pass away? Would all other partners be comfortable working with this person?
- Would you be able to afford to pay out a partner’s share if something were to happen to them?
Before purchasing any insurance policy, it’s important to consider the role it will play in reducing your business risk. If you have key partners in your business, Partnership Protection Insurance may be relevant for you.
We can assist you to obtain advice on this product, speak to us for more information
Conditions apply for each policy and the information expected from you for a policy to trigger. Coverage may differ based on specific clauses in individual policies. Please ask your broker to explain the additional benefits and exclusions pertaining to your policy.
The information provided is general advice only and does not take account of your personal circumstances or needs. Please refer to our financial services guide which contains details of our services and how we are remunerated.