Insurance against business failure
ANGLIA INDUSTRY & BUSINESS - 1ST JANUARY 2005
Protection underwriters Burgesses has launched UnemploymentSafe a package of low-cost insurance protection against the risks of business failure – a world first, according to the company.
Underwritten at Lloyd’s, UnemploymentSafe is available to all owner directors or partners of UK businesses, or the self employed provided that they are aged between 18 and 65 and resident in the UK, irrespective of occupation or the particular industry in which they work.
Benefits of up to £2,5000 per applicant per month are available for up to one or two years after only thirty days provided that the insured’s business ceases to trade due to circumstances beyond their control. For example, the company says this would certainly include component manufacturers affected by the Vauxhall factory closure at Luton; but also farmers who sustain incidents of foot and mouth disease and general manufacturers who, due to the high value of the pound, cannot complete with cheap imports.
Burgesses says premiums are relatively low and tax deductible. For example, a self employed cabinetmaker wishing to insure his month income of £2,000 for up to twelve months would pay £50 per month. This would increase to £60 per month for benefits of up to two years.
