Why Protecting Your Business Is Protecting Your Family

When you run your own business, it’s not just your job, it’s your income, your future, and what keeps everything ticking over at home too.

The business pays the mortgage, keeps the lights on, covers the school trips, the food shop, the holidays — everything that makes life work.

So, if something happened to you, if you couldn’t work because of illness or injury, or worse, it wouldn’t just hit the business. It would hit home too. That’s why protecting your business is protecting your family.

What does that actually mean?

Let’s break it down.

If your business relies on you — your skills, your contacts, your drive and suddenly you couldn’t work, what would happen?

• Would the business still make money?

• Could the team or your family afford to keep it running?

• Could your partner or co-director buy out your share if needed?

  
  

That’s what business protection covers. It’s basically a financial safety net that keeps things going if life throws a curveball.

There are a few different types of cover

Here’s the simple version:

• Key Person Cover – pays money to the business if someone essential (like you) can’t work due to illness or death.

• Shareholder Protection – gives the surviving business owners the funds to buy your share if you passed away, so your family gets the value of your share instead of being left with business paperwork.

• Relevant Life Cover – a life policy for directors, paid for by the business. It’s tax-efficient, and the pay out goes straight to your loved ones.

• Executive Income Protection – pays your salary if you can’t work due to sickness or injury. The business pays the premium, but the money comes to you.

  
  

There are a few other types of business protection, depending on how your business is set up, but we don’t need to get too technical here.

Why it makes sense financially

Because these policies are owned and paid for by the business, they’re usually tax-efficient. In most cases, premiums can be treated as a business expense, and pay outs can often be made tax-free.

So instead of paying for personal insurance out of your own pocket, you can protect yourself and your family through the company, in a smarter, more cost-effective way.

It’s not about fear — it’s about being smart

Most business owners I speak to aren’t reckless. They insure their vans, laptops, and buildings without thinking twice, but the person who keeps it all running? That’s often left unprotected.

Protecting your business isn’t about being negative or overcautious. It’s about being smart. It’s making sure that if something unexpected happened, your business and your family, would be looked after.