Now that the new tax year is underway, it is a natural time to check that the plans you have in place still reflect the business you are running. You may already have reviewed budgets, growth plans, staffing or tax planning - so it also makes sense to ask whether your business protection is still doing its job.
For many SME owners, insurance is put in place at a specific moment. It might have been arranged when the business was smaller, when lending was taken out, when a shareholder joined, or when you first started offering employee benefits. At the time, it may have been exactly right.
The question is whether it still matches the business now.
At BPS, we help business owners make sure their protection still fits the company they are running today.
Business changes quietly. Rarely in one dramatic moment.
You might have taken on more employees. Turnover may have grown. A key person may now carry far more responsibility than they did a few years ago. Your ownership structure may have changed. New lending, new contracts, new locations or new plans can all affect whether your existing protection is still doing what you need it to.
That is why inertia can become a real issue - not because business owners are doing anything wrong, but because cover that was right at sign-off can gradually fall out of alignment as the business develops.
A business insurance review is not about starting again. It is about making sure the structure still supports what you have built.
Every business has individuals who are critical to its success. That might be the founder, a managing director, a senior salesperson, an operations lead, a technical specialist, or someone with deep client relationships. Key person insurance is designed to support business continuity if one of those individuals is unable to work for a significant period.
A useful question to ask yourself: if that person were out of the picture for six months or more, what would the business need to keep moving?
If your team has grown, roles have changed, or certain individuals carry more weight than they did when your policy was arranged, this is worth reviewing.
If your business has multiple shareholders, it is worth checking whether there is a clear plan in place if one shareholder passes away or becomes seriously ill. Shareholder life insurance can provide certainty at an uncertain time, allowing the deceased shareholder's family to receive fair value for their shares while helping the remaining owners retain control of the business.
If your ownership has changed, share values have increased, or the business is worth significantly more than when the cover was arranged, this should be a priority in your review.
Relevant life insurance can be a tax-efficient way to provide personal life cover for directors or employees, and it is often more cost-effective than a standard personal policy arranged outside the business. Death in service can offer meaningful financial security for employees and their families. Employer income protection schemes can support employees during periods of illness, while employer critical illness cover can allow employees to focus on recovery without the same financial pressure.
These benefits are genuinely valuable, but only if they still reflect the team you have today. If your workforce has grown, salaries have changed, or you are thinking more seriously about retention and wellbeing, this is a good moment to ask whether your benefits package still feels aligned with your culture.
- Has your business taken on new borrowing since your last review?
- Have profits, turnover or company value increased significantly?
- Has your team grown, or have key roles changed?
- Do you have shareholder protection in place, and is the sum insured still accurate?
- Are your employee benefits still relevant to your current workforce?
- Do employees understand what their benefits actually cover?
- Have any business locations, contracts or services changed?
If several of these apply, it is likely worth a conversation.
If you have not reviewed your business protection for a few years, this is an ideal time to do it. At BPS, we help SME owners understand their options clearly and make sure their cover reflects the company they are running today. To arrange a business insurance review, get in touch with BPS today.
