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As companies expand and grow larger, group risk can become an important factor in the success, or failure, of these companies. Policies can be put in place to protect against the financial effects of the various risks companies face and can form an important part of employee benefits packages. These, along with group pension plans can entice the best potential employees and be used as a good tool to retain staff.
A couple of typical policies for companies are; Shareholder Protection and Key Man Insurance. As a limited company you may have more than one shareholder and an agreement in place that on the death of one shareholder, the survivor has the first option to buy the deceaseds company share holding. However, the company may have grown to a size that means the survivor can not afford the transaction. Shareholder Protection can provide the sum of money needed to enable the purchase to go ahead.
Other types of benefits for employees are Life Cover (Death In Service), Health Insurance and Income Protection. These can be used in combination for your employees benefit and also aid their recovery from illness to minimise the impact on your business.
It is important that the correct policies are established so that the group risks you want covered, are covered. There are numerous group risk policies and they can often overlap adding uneccesary expense. We can offer a fully advised service to identify the right group risk policies and the best providers to use.