This article has been submitted by Towergate
Whether a start-up or established brand, the key to a successful business is undoubtedly cashflow. This is why many businesses take out business loans; a way to secure cashflow and stay in; ‘the black’. If you are a business with a loan in place, then you may have considered Business Loan Protection.
As a service that is incredibly beneficial yet not very well known, we at Towergate explore the features of what a Business Loan Protection policy can offer and advise on how you can go about setting one up.
What does Business Loan Protection cover?
A Business Loan Protection policy can provide a lump sum to cover your business loans and other credit facilities if a business owner dies or becomes seriously ill. This could include loans, commercial mortgages or a director’s loan. In the event you lose a business partner, you may want or need to repay outstanding business loans, some of which may be linked to personal guarantees or have got to be repaid when someone dies.
Level of cover
Like any insurance policy, you should think carefully about the level of cover your business requires. When it comes to Business Loan Protection, your cover amount should reflect the total amount required to repay funds borrowed against the business. You should also consider the tax implications of Business Loan Protection before taking out a policy.
Setting up Business Loan Protection cover
Before setting up the policy, it is advisable that all business owners understand their liability with regards to the credit arrangements in place. Having this information to hand can save a great deal of time when going through the set-up process.
Whilst this cover can be taken out as an individual policy, Towergate can also build a bespoke policy to include the Business Protection features that your business may need. Understanding that not one size fits all, we are proud to offer tailored solutions to all types and size of business.
If you or the other key people in your organisation are interested in learning more about the options available to your business, contact Jack Lane at Towergate on [email protected] who will put you in touch with Towergate’s Business Protection Insurance team.