Do you run a small business and employ staff? Do you know what would happen to them financially if they were unable to work? If you think that they might experience financial difficulties, then you might want to think about insuring their earnings and some of the other costs associated with employing them.

By earnings, I am referring to salary, any commission, bonuses or P11D benefits. For company directors this can even include dividends in certain situations.

If this is something you wish to explore, you should also consider the period of time over which any benefit would be payable and how soon it should paid after they become unable to work. It is even possible, where an employee returns to work after a period of absence due to sickness or injury, to pay further benefits if they become unable to work again.

There are maximum benefit amounts, but these are there only to ensure that the member of staff is incentivised to return to work, of course, when they are well enough to do so.

If the benefit is in payment, even if the company ceases trading, it will continue to be payable, subject to the normal conditions.

Large businesses have for a long time been able (due to their scale) to offer their staff attractive Income Protection benefits. The ability of small businesses to offer something similar hasn`t been around for as long, but they certainly can do so now. Moreover, they can do so on a basis that is tax efficient to both parties.

If all this wasn`t enough, certain cover providers will offer access to a second medical opinion, round the clock health and wellbeing service and a key person replacement service.

If you think you might be in this position or want to discuss the issues raised in this article, please contact your normal Dentons Wealth Independent Financial Adviser. 

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