Who can have executive income protection cover?

The key requirement is that executive income protection must be set up by an employer for an employee or company director. Most commonly this applies to limited companies, charities or any other basis where there is an employer / employee relationship.

When does executive income protection benefit become payable?

Beyond insurance, we can support your business with services such as employee benefits, general insurance, risk reviews, cyber insights, building valuations, individual protection and access to trusted partners across areas like HR, finance, legal and sustainability, all aimed at strengthening your overall resilience.

Can I make multiple claims under an executive income protection policy?

Yes. However, in most cases, the policy wording will stipulate that if you are looking to claim for a condition or injury you have previously claimed for, you’ll need to have been back to work for at least 6 consecutive months.

How do I take out executive income protection?

Talk to our team. We’ll discuss your needs and requirements and who needs the cover. We’ll provide you with our recommendations and quotations and once you’re happy to proceed, we’ll guide you through the underwriting process. This usually begins with a medical and lifestyle questionnaire and may include additional requirements such as a report from your GP and/or a medical. We’ll walk you through every step of the process with your own dedicated Client Adviser.

Executive income protection

Expertise
Meet the team
FAQs
Resources

Connect to a specialist

Executive income protection can help your business protect the income of directors and employees if illness or injury prevents them from working. Designed and paid for by the business, it can provide up to 80% of the insured individual’s income to provide financial support for the employee whilst giving you, your people and their families peace of mind.

Who we support

Company directors
Business owners
Employees

Why us?

Advice that makes a difference

People are your greatest asset, and your biggest risk
Is your “key person” really who you think it is?

We're specialists...

Through our collective experience, we’ve observed many of the best and worst practices in the insurance advisory market. We’re here to challenge the status quo and establish a new level of service. Our business protection insurance team is on hand to help you provide security for you and your team with income protection cover for your directors and employees.

Challenges facing the people in your business

If a company director, senior leader or key employee became unable to work due to illness or injury, how would your business continue to support their income while managing day-to-day costs? For many businesses, standard sick pay arrangements may not reflect the value, responsibilities or remuneration structure of your people, particularly where income includes salary, dividends, national insurance and pension contributions or other benefits.

Executive income protection gives your business the opportunity to provide a structured way to protect income, supporting you and your people to reduce financial pressure at home.

How we support with executive income protection

Our approach is slightly different than most – we take the time to understand your business, your people and the roles that are critical to your continued success. We’ll help you identify who may need protection, how much cover may be appropriate and how an executive income protection policy could be structured around salary, dividends, pension contributions and employer National Insurance.

We’ll explain the options available, including deferred periods, benefit levels, claim payment periods and additional cover for employment costs. Once you’re happy with our recommendations, we’ll guide you through quotations, applications and underwriting, and continue to review the cover as your business and your team evolve.

Your business performs with greater confidence

Protecting the income of directors, executives and key employees supports your role as a responsible employer and helps strengthen the resilience of your business. It can provide reassurance that your people have financial security if they are unable to work, while helping the business manage employment costs and maintain stability during a difficult period.

With the right executive income protection arrangements in place as part of your overall business protection strategy, you can plan with more certainty, knowing your business and your people are protected.

What is executive income protection?

Executive income protection provides a monthly benefit for an employee or company director if they can’t work due to illness or injury.

Should the insured individual become unable to work, a monthly income is paid to your business to pass on to them through PAYE or as appropriate. The benefit becomes payable after a waiting period, known as a deferred period, which can usually be specified as 4, 8, 13, 26 or 52 weeks. The shorter the deferred period, the greater the cost of providing the cover will be.

Arranged for and paid for by the company, executive income protection can provide cover for up to 80% of earnings, including salary, dividends and any P11D benefits.

This can be beneficial where the person insured has a spouse earning dividends for an administrative role that is dependent on them being able to work, as their dividends can also be covered.

Executive income protection benefit claims are paid for a determined period of time. Limited cover options can provide income payments for up to 12 or 24 months and full cover can continue up until a specified end date – usually a retirement date. In either case, benefits cease if the individual recovers and returns to work.

As an employer, you also have the option to include cover for National Insurance and pension contributions.

In most cases, executive income protection can be viewed as an allowable business expense by HMRC and is therefore usually tax deductible.

Should the individual insured become unable to work, a monthly income is paid to your business to pass on to them through PAYE or as appropriate. The benefit becomes payable after a waiting period, know as a deferred period, which can usually be specified as 4, 8, 13, 26 or 52 weeks. The shorter the deferred period, the greater the cost of providing the cover will be.

Who is executive income protection for?

Executive income protection is for businesses that want to protect the income of individual employees if illness or injury prevents them from working. It is typically used to support company directors, business owners, senior leaders, partners and individual employees.

Executive income protection may be suitable for:

Company directors whose income, leadership and decision-making are central to the business
Business owners and shareholders who rely on a mix of salary, dividends and benefits as part of their overall remuneration
Senior executives and leadership teams whose absence could create financial pressure or operational disruption
Key employees with specialist skills, technical knowledge or client relationships that are difficult to replace quickly
Business partners in professional firms or owner-managed businesses where one person’s absence could affect income, service delivery or growth plans
High earners who may need a more tailored income protection solution than a standard personal policy can provide (maximum level of cover available for salary and dividends is 80% up to £25,000 per month)
Employees with pension or benefit commitments where the business wants to maintain employer pension contributions, National Insurance or other agreed costs during a claim.