Trade bodies the British Insurance Brokers Association (BIBA) and Group Risk Development (Grid) have combined to produce a guide to business protection.
The has been produced to explain some of the people risks a business may need to manage and to help businesses consider the role insurance can play in protecting against those risks.
It will help advisers clarify what their clients need to know about business key person and employee protection insurance and how to help them protect their financial risks.
For key person protection it breaks down the risk associated with a business being reliant on just a few vital individuals and discusses the differences between life, critical illness and income protection for those people.
It also explains the importance of shareholder protection and partnership protection to ensure the ongoing continuity of ownership.
On group risk and employee benefits it highlights the protection policies available and the benefits for businesses supporting their workforce.
This includes employees who may have underlying health conditions and are otherwise unable to access insurance to protect themselves.
“Many smaller businesses, typically those with 250 or fewer employees, are particularly vulnerable to financial loss to the business if an individual key to its success dies or becomes long-term disabled,” the guide noted.
The Association of British Insurers (ABI) and Chartered Insurance Institute (CII) also supported the guide and the importance of business key person and employee protection insurance.