• Home
• About Kilkee
• Corporate Financial Planning
• Group Pensions
• Director's Pensions
• Private Medical Insurance
• Business Protection
• Life Insurance
• Critical Illness
• Income Protection
• Contact us

Business Protection

The Value of Protecting Your Company

Have you considered the financial difficulties that can arise as a result of the death of one of your company's key people or shareholders? The resulting costs of replacing these people, the loss of income and ownership issues that may arise require serious consideration. By putting in place life insurance, the financial risk to the company and its shareholders can be mitigated. There are two types of policy you may wish to consider. These are key man protection and shareholder protection.

Key Man Protection

Virtually every business will protect themselves from the loss of material assets such as buildings and contents, however they ignore the risk of losing personnel who may be vital to the sucess of the business. The risk of death or serious illness to a key employee can result in severe difficulties. As well as the costs involved in replacing the employee and the loss of income they generate for the company, deadlines may be difficult or impossible to meet, contracts may be lost and staff morale may suffer all leading to a loss of profits.

By putting in place an insurance policy owned by the company, it is possible to reduce the financial impact of the death or serious illness of a key member of staff.

Shareholder Protection

For private limited companies where there may only be a small number of shareholders, it is very important to consider the possible consequences of the death of a shareholder. Normally the shares would pass to the deceased's family who will often have no interest in the business and would prefer a cash lump sum. The remaining shareholders may also want to take full control of the business but may not have the resources to buy-out the shares.

Shareholder protection provides a lump sum on the death of a shareholder. This can then be used to purchase the deceased's shares providing security for the deceased's family as well as providing the remaining shareholders with full control of the company.

Kilkee Financial Services can provide advice on protecting your business and it's shareholders, identifying the level of cover that you require and sourcing the most suitable policies to meet your needs.