Director and Partner Share Protection Insurance

Key Man Insurance

Share Protection

Loan Protection

Business Loan Protection Insurance

Business Loan Protection Insurance is a very specialist, and sometimes complex, area. Getting expert advice is crucial in making sure your policies are set up correctly and your company is adequately protected.

What is Business Loan protection insurance

As its name suggests it's a form of insurance designed to repay all or part of a company's debts should a key employee die or suffer a critical illness.

It is a more restrictive policy than another form of keyman insurance called profit protection as the money can only be used to repay debt, including an overdraft facility rather than for general use such as shore up profits or retrain and recruit staff etc.

Why insure company debt

Corporate banking experts suggest that around half of all corporate debt, especially among smaller firms and start-up, have some sort of personal guarantee in place undertaken by the directors. One of the most common is a second charge on a director's property.

Bankers are generally hard businessmen especially when their loans are under threat. This often means the small print has certain clauses which can be enacted if the company's operations are threatened, perhaps by the death of a key employee.

Clauses such as -

Early repayment - The responsibility for early repayment of any loans including overdrafts
Bank takes control of some assets - Company assets might fall under the control of the company's bankers should any debts not be repaid immediately

And in turn this can lead to loan defaults - insolvency (even of a healthy business) - major cash flow problems - the bank calling on personal assets even from the estate of the deceased Director/Partner.

For more information, advice and quotes on Business Loan Protection Insurance simply complete one of the forms to the right or call us free phone 0800 612 2007 to speak to one of our trained advisers.


	First Name
	Surname
	Type Of Policy
	Amount Of Cover
	Policy Term
	Telephone Number
	Email Address


	Name
	Date Of Call
	Time Of Call
	Telephone Number

- Why Home Shield
- About Home Shield

- Life Insurance
- MPPI
- Home Insurance
- Landlords
- Commercial
- Business

- Privacy Policy
- Business Terms
- Site Map
- News
- RSS
- Links
- Canoe Challenge
- Chamber

- Call Me Back
- Contact Us

Home Shield Insurance Services Ltd is registered in England No. 5867297. Home Shield Insurance Services Ltd is an appointed representative of TenetLime Ltd which is authorised and regulated by the Financial Services Authority. TenetLime Ltd is entered on the FSA register under reference 311266. The guidance contained within this website is subject to the UK regulatory regime and is therefore primarily targeted at consumers based in the UK.

Home Shield Insurance Services Limited, 19 Griffith Street, Rushden, Northamptonshire, NN10 0RL