Protecting your business with the correct insurance policy is vital, especially for mums who own businesses.
Business protection insurance is a key investment for mums who own businesses. Not only will it give you peace of mind that your company is financially protected in the event of your death or inability to work due to illness or injury, but it will also ensure that your little ones are supported no matter what.
But is business protection insurance right for you? In this guide, we’ll explore the key benefits of business protection insurance for mums who own businesses; how much it costs; and the different types available. Read on to learn everything you need to know.
What is Business Protection Insurance For Mums
Business protection insurance for mums will offer some much-needed assurance that their business is protected come what may.
Life is forever throwing the unexpected at us. Business protection insurance provides a security blanket that means any business debts or financial responsibilities aren’t passed onto your family should you die.
What are the key benefits of business protection insurance for mums?
As a mum and a business owner, there are a pile of responsibilities on your plate. As such, business protection insurance is a must for mums who own businesses. It will give you peace of mind that your little ones and your business are protected no matter what happens.
Here are some of the other benefits to purchasing business protection insurance for mums who own business:
- Debt Protection: Business protection insurance helps to stop any business related debts from being passed on to your family.
- Continue To Trade: Business protection insurance for mums will allow your business to continue to operate as usual in the event of your death or should you suddenly fall critically ill. This is critical as it protects and promotes continued income to support your children.
- Liability Cover: Some business protection insurance policies for mums also offer liability cover. This protects your business should you be liable for the cost of injury or property damage claims against your business.
- Cover For Fire & Theft: Protect your business and assets against the threat of fire or theft. Imagine your business was to unexpectedly go up in flames due to a faulty piece of equipment for example. Or, your business could end up the random target of theft. Business protection insurance for mums will ensure that you don’t lose out on the cost of equipment or lost income in the wake of such a horrific event.
- Legal Fees: Should you run into a court battle in business, business protection insurance for mums will help to cover any legal fees you find yourself needing to pay.
It’s clear that business protection insurance for mums that own businesses offers plenty of benefits. But what types of cover are available? And which one is right for you? Let’s learn a little more.
What are the different types of business protection insurance for mums?
There are three main types of business protection insurance that mums will need to consider. Which one is right for you will depend on a number of factors including:
- How established your business is
- Your budget
- The level of cover you feel is necessary
- Your total business debts at the time of taking out the policy
Let’s look at the main types of business protection insurance for mums the market has to offer right now.
Main Types Of Business Protection Insurance For Mums
The main types of business protection insurance mums who own businesses may need are:
- Public Liability Insurance: This covers the cost of claims made by members of the public for any incident that occurs as a result of your business. This is not a legal requirement and typically costs £50-£500 per year averaging at £118 per year for a small business in the UK.
- Employee Liability Insurance: This covers any compensation and legal costs should an employee suffer a work-related illness or injury. This is a legal requirement for businesses in the UK. You can expect to pay around £60-£210 per employee per year.
Other types of business protection insurance policies and add ons mums may wish to think about are outlined below.
Business Protection Insurance For Mums: Key Person Insurance
Key person insurance provides a lump sum to your business if someone vital to the running of your company were to die or be diagnosed with a critical illness.
This type of business protection insurance is designed to help businesses owned by mums when their success is dependent on these key employees. This can be really handy for small businesses, where the loss of one key person would have a detrimental effect.
Mums who own businesses and choose to take out this type of business protection insurance will have the option to insure themselves, someone like the general manager or any other employee who is essential to the day-to-day operations of your business.
When considering which key people to cover with your business protection insurance policy, start by answering the following questions about each employee:
- How would your business be impacted by losing them?
- Would losing them affect your businesses’ revenue?
- How replaceable (realistically) are they?
If your answers indicate that your business would suffer from the loss of this person, putting key person protection in place is a good idea.
Business Protection Insurance For Mums: Relevant Life Cover
Relevant life cover offers life insurance for your employees and protects their families. This type of business protection insurance will pay out a lump sum to your employees’ families or beneficiaries if they were to die while in your employment.
As a mum and a business owner, you’re probably aware that a life insurance policy is an absolute must. This type of business protection insurance for mums means they can offer each of their employees and their families that same reassurance.
Relevant life cover is an enticing employee perk. Not only will it help your business attract high-quality employees, it can help boost morale and result in improved workplace productivity. This can be purchased as an add on to an existing business protection insurance policy for mums.
Plus, this cover is available to companies of all sizes, making it a great option for smaller businesses who aren’t eligible for group insurance packages.
Business Protection Insurance For Mums: Shareholder Protection
Shareholder protection delivers a lump sum payment to the remaining shareholders if you were to die. This will provide the financial stability your co-owners need to be able to buy your shares in the business.
Shareholder protection is also a viable business protection insurance choice for mums as it will benefit their family. Should you die, you can leave your share in the business to your family. They will then have the option to become key shareholders themselves or sell the shares to offer them financial protection for the foreseeable future.
Why Secure Business Protection Insurance For Mums with Mummy Insurance
At Mummy Insurance, we’re dedicated to finding the very best quotes from all the top UK insurers. We’ll help you to fully compare all your business protection insurance options. Plus, all of our quotes are completely personalised and our experts are always on hand to help guide mums through the entire purchasing process.
