Business Loan Protection
Secure the financial health of your business
By helping you protect your business loans, we enable you to prepare for the worst if you lose one of your best.
Speak to an expertCustomers love us! Don't take our word for it. Check out what some of them have to say...
Cover the loss of a key person
If an essential member of your business with a direct impact on its profits were to pass away or face a critical illness, could you cover the loss? Business Loan Protection maintains business continuity and alleviates financial burdens during these challenging times. The lump sum payment can be used to settle outstanding debts, such as loans, overdrafts, or commercial mortgages, should you lose a business owner, director, or highly skilled employee.
A painless repayment
We work with you to define the ideal level of cover for your needs, taking into consideration your company’s debt profile. We can also advise on different policy options, including 'level' and 'decreasing' cover and additional Critical Illness cover to enhance your protection.
Speak to an expert
Ready to secure the cover that’s right for you?
Fill out the form below to arrange a time to speak to a Business Loan Protection expert.
FAQs
How do you take out business loan protection?
When a business takes out a loan, a specific shareholder(s) is usually responsible for repayment. Business loan protection is taken out on the individual responsible for the repayments. If the business is a limited company, the business itself is the policyholder. In the case of a partnership or sole trader, the individual owners hold the policy.
Our expert advisers can help tailor a policy to fit your business needs.
Is business loan insurance and key person insurance the same thing?
Not exactly. While key person insurance can sometimes be used to cover business loan repayments, there are key differences:
- Business loan insurance must match the outstanding loan amount to ensure full coverage of repayments.
- It must be in place for the duration of the loan, whereas key person insurance covers the length of a key individual’s employment.
What can business loan insurance cover?
Business loan insurance can cover various types of loans, including:
- Commercial loans or mortgages on business premises
- Venture capital loans taken during startup or expansion
- Director’s loans—funds paid to a director or their family that do not count as salary or dividends
Do you need to take out business loan protection?
No, there is no legal requirement to take out business loan protection.
However, lenders often require businesses to provide security to guarantee loan repayment, making business loan protection a highly recommended safeguard.
Can business loan insurance be transferred if the loan is refinanced?
Yes, in many cases, business loan insurance can be adjusted or transferred to cover a refinanced loan, as long as the coverage aligns with the new loan amount and terms.
What happens if the insured person leaves the business?
If the person covered by the business loan insurance leaves the company, the policy may need to be restructured or reassigned to a new individual responsible for the loan repayments. Our advisers can help ensure continuous coverage in such cases.