Running a business comes with many challenges — but few owners plan for what would happen if a key person were to die or become seriously ill. Business protection provides a financial safety net in those situations, helping ensure the survival and stability of your company when it matters most.
At Bidwell Accountancy Ltd, we help business owners in Milton Keynes understand and plan for these risks so they can protect both their company and the people behind it.
What Is Business Protection?
Business protection refers to a suite of insurance-based solutions designed to safeguard your business if a key person — such as an owner, director, or shareholder — dies, becomes critically ill, or is unable to work due to serious illness.
The aim is simple: to provide financial continuity, stability, and peace of mind for your business and its stakeholders.
These policies are suitable for all business structures, including:
Sole traders – who may rely heavily on one individual for income generation
Partnerships – where the loss of a partner can disrupt day-to-day operations and profit sharing
Limited companies – where shareholder relationships and share ownership can become complicated if someone passes away or becomes incapacitated
Without business protection, your company could face cashflow strain, ownership disputes, or even closure in the event of a tragedy.
Shareholder Protection Explained
One of the most common forms of business protection is shareholder protection insurance.
This type of policy ensures that if a shareholder dies or becomes critically ill, the remaining shareholders receive a lump-sum payout. This payout allows them to buy the affected shareholder’s shares at an agreed value.
This arrangement benefits both sides:
The deceased or ill shareholder’s family or beneficiaries receive fair compensation in cash.
The surviving shareholders retain full control of the business, avoiding the uncertainty of working with a “silent partner” who may have no interest or experience in the company.
If the policy is owned and paid for by the company itself, the premiums are often deductible business expenses for corporation tax purposes — making it not only a sound protection strategy but also a tax-efficient one.
Why Business Protection Matters
🔒 Business continuity – Helps keep the business running during difficult times.
💰 Financial security – Provides funds to manage debt, recruit replacements, or buy out shares.
🧾 Tax efficiency – Some policies may qualify for corporation tax relief.
🤝 Peace of mind – Reassures directors, employees, and families that there’s a plan in place.
At Bidwell Accountancy Ltd, we often see that businesses insure their premises and equipment — but forget to protect their most valuable assets: the people who make the business work.
Speak to Bidwell Accountancy About Business Protection
Understanding the right form of business protection can be complex — from key person insurance to shareholder protection and partnership cover. That’s where we come in.
At Bidwell Accountancy Ltd, our team of friendly accountants in Milton Keynes can help you assess your company’s structure, identify potential risks, and connect you with the right specialists to set up suitable business protection cover.
Let us help you protect what you’ve worked so hard to build.
📞 Call us on 01908 380391
🌐 Or visit www.bidwellaccountancy.com
We’ll point you in the right direction — so you can focus on running your business with confidence, knowing your future is protected.
Share this post: