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Company directors and insurance policies

ended 10. July 2023

With the economy under pressure, interest rates rising and many businesses experiencing a fair bit of turbulence due to inflation, are you seeing more business owners choose not to take out business insurance, e.g. key person protection, directors' life insurance, or other insurances that they would ideally have in place for them and their staff? Or perhaps you've seen examples of business owners cancelling policies over the past year to protect their bottom line. But what are the risks of doing so? 

2 responses from the Newspage community

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Rhys SchofieldVerified
Brand Director at Peak Mortgages and Protection
We're actually seeing more people take out business policies now than ever before. Very often, they've only ever discussed personal protection in the past and the fact that they can make the pounds they earn go further by putting some protection through the business opens a lot of doors to proper conversations. Ultimately, business protection should be reviewed annually with a client to make sure it's still appropriate and if you're doing that you shouldn't have to worry too much about out of-the-blue cancellations.
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Elliot CotterellVerified
Director at Windsor Hill Mortgages and Cotterell & Cotterell Commercial Finance
In times of economic pressure, some business owners may consider cutting costs by not taking out or cancelling insurance policies. However, this exposes them to significant risks. Key person protection and directors' life insurance are crucial for financial stability and continuity. Without them, businesses face vulnerability, financial instability, and potential disruption. It is important for business owners to carefully consider the consequences and work closely with insurance advisors to ensure appropriate coverage. At Windsor Hill Mortgages, we understand the importance of comprehensive insurance and are dedicated to assisting business owners in protecting their financial future.