Aviva have just announced the results of research carried out with Irish SME’s , in May of this year, in relation to Business Protection*.

They found that:

  • Two out of three Irish SMEs claim to rely on a single individual or a small group of individuals to generate profit
  • Half of the businesses say the death or illness of a key individual would result in revenue loss
  • 30% told Aviva they’d cease to trade in the short to medium term or declare bankrupt

Just 9% of business owners have either key person cover or shareholder protection in place!

* Source: Aviva Business Protection Research, May 2017. Aviva spoke to 350 business owners across the country


This is a startling figure!

So what is Business Protection & should you have it?

Based on the above figures, it is very likely that if you are a SME owner  you do need to review your need for Business Protection.

Business Protection broadly covers the ability of any business to pay off loans, protect profits and/or buy a deceased’s co-owner’s share of the business. A key person in a business may also need to be protected.

I will briefly outline the various types of business protection coverage;

Keyperson Assurance:

Keyperson Assurance is life assurance and/or specified illness cover taken out by an employer on a key director or employee, to protect the employer from the financial consequences of that individual’s death or illness*.  Putting Keyperson Assurance in place provides the business with a lump sum payment which can help protect against loss of profits that may arise from the death or diagnosis of a specified illness of a key director
or employee, much in the same way as a company will normally insure against loss of trading profits resulting from fire and other risks.

Partnership Assurance:

The main objective of Partnership Assurance is to ensure that the surviving partners receive the necessary funds to purchase the deceased partner’s share in the business. Under this arrangement, the surviving partners purchase their deceased colleague’s shareholding from his/her estate at market value.

Co-Directors Insurance:

The main objective of Co-Director’s Insurance is to ensure that the surviving directors receive the necessary funds to purchase the deceased director’s shareholding in the business. Under this arrangement, the surviving directors purchase their deceased colleague’s shareholding from his/her estate at market value.

Company Share Buy Back:

Corporate Co-Director Insurance gives the company the security that there will be funds available to buy back shares if a director dies and in
doing so maintain its control over the company’s affairs.


You will wish to protect your business in the event of the unexpected happen.  If you want to review your need for the type of business protection which applies to your business, do contact us at 053 9233640.