Business loan protection covers your business borrowing — including commercial loans, overdrafts, and director's loans — if a key person dies or is diagnosed with a critical illness. The policy pays out a lump sum that can be used to repay or service the debt, preventing lenders from calling in loans at the worst possible time. We'll match you with a specialist adviser.
What business loan protection covers
- Commercial loans and business overdrafts
- Director's personal guarantees on business borrowing
- Commercial property loans
- Business credit facilities
Who needs it?
Any business with significant borrowing where a key person's death or serious illness could affect the ability to repay — particularly businesses where a director has given a personal guarantee, where the lender's security is tied to a key individual, or where the loss of a key person would reduce revenue to the point of threatening debt serviceability.
How the cover works
A life insurance and/or critical illness policy is taken out on the key person (or persons) whose loss would put the borrowing at risk. The sum assured matches the outstanding debt. If the insured event occurs, the payout can be used to repay the loan in full, giving the business breathing room to restructure or continue trading.
What you might need to hand
- Details of business borrowing (type, amount, lender)
- Details of any personal guarantees given
- Key personnel details
- Company financial information (turnover, profit)