Business Loan Protection

If your business borrows money, it's understandable you will want cover to repay some or all of the loan on the death or critical illness of a shareholder, partner or key person.

Lenders may have the right to demand the business pays back any outstanding loans and this could be difficult to pay off at short notice. The loss of a key person can put immense pressure on remaining owners if there are any outstanding financial commitments.

Types of debt you can cover

  • Directors loans
  • Commercial loans and mortgages
  • Personal guarantees
  • Venture capital loans
  • Overdrafts or credit cards

  • The loss of the individual or individuals who have guaranteed the loan. Who is responsible for this?
  • If you have an overdraft, loan or commercial mortgage, and cannot make the repayments does it have serious implications for your business?
  • Director loan accounts should be repaid in full on death - where will this money come from?
  • A policy is taken out on the life of a key individual or individuals so that any money due from a claim can be used to pay towards any outstanding debt or loan.
  • The level of cover should reflect the amount needed to pay the outstanding debt.
  • The policy should be set up to reflect the terms of the borrowings.
  • You can also protect a business owner should they die or become seriously ill. It provides a lump sum to cover your business loans and other debts.

Words of Wisdom

"Most businesses are unaware they need protection in place to cover business debt if they become ill or die. Many will need capital to start-up or grow, so it's sensible to have a back-up plan if things were to go wrong."

Ricky Butler - Senior Adviser

Specialist advice, impartial, free.

Speak with a business protection specialist who can answer any questions you have, and find the most suitable cover for your business, employees and your family.

Call 0800 804 6813

Mon-Thurs: 8am-8pm,
Friday: 8am-7pm
Saturday: 9am-2.30pm