Loan Protection | Business

BUSINESS LOAN PROTECTION

Protect your business. Protect your lending.

Business Loan Protection helps ensure loans, overdrafts and commercial mortgages can be repaid when it matters most.

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We understand loan protection

Business Loan Protection (sometimes called Business Loan Insurance) is a type of business protection policy designed to help a company repay outstanding borrowing if a key individual connected to the loan dies or is diagnosed with a specified critical illness (if selected).

Many UK businesses rely on loans, commercial mortgages, overdrafts or director guarantees to fund growth. If a key director, partner or guarantor were to die or suffer a serious illness, the business could face pressure from lenders to repay the debt - at a time when cash flow may already be affected.

Business Loan Protection provides a lump sum to the business on a valid claim, helping to repay or reduce the outstanding loan and protect the company’s financial stability.

FREQUENTLY ASKED QUESTIONS

How does Business Loan Protection work?
If you lose a business partner, the financial impact on your business can be significant. In addition to coping with the loss, the remaining partners may also be responsible for repaying outstanding business loans.

Business Loan Protection can help provide financial stability during this difficult time. It pays out a lump sum to help clear or reduce outstanding business loans, easing the financial burden on the business and the remaining partners.
What types of borrowing can Loan Protection cover?
Policies can be arranged to cover:

Business loans
Commercial mortgages
Overdraft facilities
Director loan accounts
Personal guarantees linked to business borrowing

The level and structure of cover can be tailored to match the outstanding debt.
Who is insured under a Loan Protection policy?
Typically, the policy is taken out on the life of a key director, partner, shareholder, or guarantor whose death or serious illness would impact the business’s ability to repay the loan.
How much cover does my business need?
The sum assured typically reflects the outstanding loan amount. Policies can be arranged on a level or decreasing basis, depending on whether the debt reduces over time.

Our team of advisors at Pangea Life can help calculate the appropriate level of cover for you.