Why is Business Loan Protection Insurance in the UAE so Important

Why is Business Loan Protection Insurance in the UAE so Important


Most people who own businesses are considerably hooked on their work. They encounter everyday challenges in innovative ways and keeps growing their businesses. But most frequently, they fail to acknowledge future potential risks which will damage their business. As a business owner, the hazards which will threaten your company in the future are diverse and much unpredictable. It is often within the sort of new competitors entering the market, losing your key employee, losing one among your stakeholders, or not getting enough credit from the bank. So, to tackle unprecedented circumstances which will take over your company, you would like to hedge yourself from these risks with business protection insurance. Business protection insurance offers a group of varied policies that helps your company in the event of a financial or operational fall-out.

When a business takes any quiet loan or finance, be it from a bank, other financial institutions, private contributors company directors, they’re going to be required to repay these loans fully. Should a key individual (guarantor) die or become too ill to continue working, lenders may invite the complete debt to be repaid immediately. In cases where a director has provided a loan out of his/her own money, the estate of the deceased director can also demand full repayment of this loan.

 Either way, having to completely repay outstanding debts could place a big financial burden onto a corporation at a time when a crucial key person has been lost. This, of course, could put the financial stability and effective future running of the corporate in danger. By providing the corporate with the means to repay outstanding debts, commercial loan protection insurance minimizes this risk and thereby secures the financial security of a corporation.

So how does Business Protection Insurance work?

Business protection insurance includes plans covering employees, directors, stakeholders, as well as group risk benefits. Some key features of this cover are:

  • Life cover for employees: 

Employees are your greatest asset as far as your business goes. So, losing one among your key employees going to be a big loss to the employee’s family as well as to your business. Life cover for your employees ensures that the family of your employee gets paid a payment amount just in case of death while working for your company.

  • Key employee cover: 

Your business operations can get severely affected within the absence of your key employees. So key employee cover is meant specifically to tackle this scenario. Key employee cover helps you to guard your business within the course of the death or severe illness of 1 or more of your key employees.

  • Partnership cover: 

A sudden demise or absence of your shareholder can affect your business significantly. Partnership cover helps you during such an occasion by providing your business with a payment amount within the event of the death or severe illness of 1 of its shareholders.

  • Loan protection: 

Loan protection helps you to hide business loans and credit facilities just in case you lose a business partner or repay outstanding loans.

Around a quarter of business owners are unaware that director loans need to be repaid in full upon death. Lenders would call in their debts if they lose confidence in your business. Without any business loan protection, where would this money come from?

So, how can we help?

You have worked hard to build a successful business so it’s only right you will want to protect it. Proficient Finance Solutions will help you put in place the most appropriate solutions to safeguard your company with minimal disruption.

No two businesses are the same, that’s why our solutions are catered to your exact requirements giving you the confidence to plan for a better future.


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