Business Protection Insurance Calculator

Estimate how much cover your business needs to protect against the loss of a key person, buy back shares, or provide tax-efficient life cover for employees.

What do you need to protect?

Key Person Cover Protect against the financial impact of losing a vital employee Shareholder Protection Ensure remaining directors can buy back shares Relevant Life Policy Tax-efficient life cover as an employee benefit

Calculation Method

Profit-Based Based on the profit attributable to the key person — more accurate for business stability Salary-Based Based on a multiple of their salary — simpler but less precise

Annual Gross Profit

Total Number of Staff

Recovery Period

Employee's Annual Salary

Salary Multiplier

Company Valuation

Shareholding

Annual Salary

Annual Dividends

Benefits in Kind

Employee's Age

Cover Multiplier

Estimated cover needed

Calculation Breakdown

Relevant life policy premiums are an allowable business expense for corporation tax and are not treated as a benefit in kind for the employee. Key person cover premiums may also be tax-deductible where HMRC's conditions are met. Shareholder protection premiums are typically not deductible as they protect capital value rather than trading income.

These figures are estimates to help guide your planning. The actual cover amount should be confirmed with a financial adviser who can assess your specific business circumstances.

Key Person Cover (Profit-Based): Divides total gross profit by the number of staff to estimate each person's contribution, then multiplies by the recovery period — the number of years it would realistically take to recruit and train a replacement to the same level.

Key Person Cover (Salary-Based): A simpler approach that multiplies the key person's annual salary by a factor (typically 5–10x). This is quicker but may not reflect the true financial impact of losing that person.

Shareholder Protection: Calculates the value of an individual's shareholding based on the current company valuation. This is the amount the remaining shareholders would need to buy back the shares if a shareholder dies or becomes critically ill.

Relevant Life Policy: Calculates cover as a multiple of total remuneration (salary + dividends + benefits in kind). HMRC allows up to 25x for younger employees, reducing with age. This is a tax-efficient way for a company to provide life cover for employees and directors.

Always seek professional advice to confirm the right level of cover for your business.

Your Business Protection Estimate

Estimated Cover Needed

Protection Type

Detail	Value

Estimates only. Seek professional advice. www.moneyhelpdesk.com

Need help with business protection?

A specialist adviser can help you choose the right level and type of cover to protect your business, partners, and employees.

Speak to an Adviser

Business Protection Insurance Calculator