Overview and key points
Planning for the future is crucial for the success of any business – and this includes addressing the difficult “what if something happens to one of us” question.
Having life insurance in place might not be enough if it won’t deliver the outcome the business desires if a key person or shareholder were to die.
SA Safety have kindly given us permission to share the “advice that made a difference” to their business, its directors and shareholders – and their families.
Company info
Based in the southwest of England, SA Safety operates across the United Kingdom delivering rescue teams, industrial support and accredited training to the high-risk utilities, industrial and manufacturing sectors. They specialise in the provision and delivery of training, rope access, standby rescue teams, rescue support teams, industrial cleaning and face fit testing.
Challenge
An existing Partners& client, SA Safety was introduced to the Wellbeing, Health and Protection team after highlighting the risk to the business if something were to happen to one of the company directors.
SA Safety’s three directors are key to the success of the business due to their expertise and knowledge in complex areas. These include rescue expertise in confined spaces and at heights as well as the delivery of specialist training courses.
If something were to happen to one of them then there would be a significant impact on the business. There are four shareholders within the business, two of whom are husband and wife. The policies taken out previously would not provide the desired outcome for the business. In addition, there was no key person cover or personal protection in place, leaving both the business and the families exposed to significant financial risk.
Support
The first step was to challenge the existing cover in place – and SA Safety’s understanding of what this would provide to the business. The shareholder policies in place did not reflect the current value of the business nor the shares owned. In addition, other key pieces of information had been missed or were inaccurate. As a consequence, the existing cover was not fit for purpose.
SA Safety carried out a new business valuation, and using this information, as well as understanding more about the individual roles and responsibilities within the business, we discussed at length the various risks and financial vulnerabilities they could face without the correct insurances in place. We helped the team at SA Safety understand how they could protect both the business as well as their families if something were to happen to any of the directors and shareholders.
Following this, we supported SA Safety throughout the process of arranging shareholder and key person protection as well as relevant life cover and income protection.
The new shareholder protection has enabled the business to have the funds available if one of them were to die, protecting the other shareholders and the family of the deceased. As part of this process, we introduced them to a solicitor with experience in this field to facilitate their cross-option agreement.
Key person policies are now in place for each of the directors and provide protection in the event one of the death or diagnosis of a critical illness, meaning the business would have the funds to find a temporary solution enabling them to continue to trade without worrying about the financial impact.
We also arranged income protection cover for each director to deliver financial security if they were unable to work due to ill health or an accident.
Finally, we helped them make sure their loved ones are taken care of by establishing Relevant Life cover to provide financial security for the families of each director/shareholder.
Perform
Due to the complex nature of the application process with medicals, GP reports and supporting information, the process took a while during which Caroline Wilson and the team built a great relationship with each director, building on the trust established thus far.
SA Safety are now confident in the knowledge that the business, its directors, shareholders and their families are fully protected in the event of death, critical illness and loss of income. The business is growing rapidly, and they have a robust risk management programme in place for all eventualities – and know they can rely on Partners& to support them throughout their journey.
We educated, supported and guided the client from the very first discovery meeting through to putting the policies in place.
In the words of our client:
We were introduced to Caroline and her team through the commercial insurance broking division of Partners&. Caroline quickly assessed our life insurance and income protection requirements and provided us with the necessary levels of cover to satisfy our risk profile and cost appetite.The whole process was managed well, and we were satisfied with overall level of service received.I wouldn't hesitate to recommend Caroline and the team at Partners& to any business that is looking for an experienced and competent broker to manage their insurance portfolio.