Protecting your business and its borrowing

If you have borrowed money for business purposes, it is important to safeguard the ability of the business to continue to make repayments. The last thing you will want is to lose a key person either temporarily through accident or sickness, or tragically through untimely death. Not only is there the personal impact to absorb, but can the business continue to keep the cash-flow going to meet repayments?

Commercial Payment Protection Insurance is a simple, cost-effective solution for commercial loans, overdrafts and mortgages up to £50,000. You can insure up to 4 business owners, directors, partners or key employees for accident, sickness and life cover.

• Accident / sickness cover
  Is designed to make repayments on lending facilities of 12 months or more if any one of the business’s key employees is unable to work due to accident or sickness. You can choose whether you want to cover each key person for the full repayment amount or each person for a different amount in proportion to their contribution to the business. For loans, you can select up to the monthly benefit and for overdrafts you can select up to 2.5 % of the agreed limit.
• Life Cover
  In the unfortunate event that one of the key employees should die, life cover repays the borrowing on lending facilities of £1,000 - £50,000 up to a maximum term of 10 years.
  
  For loans being repaid by equal instalments over a set term, the life cover will decrease over the term of the policy.
  
  For interest-only loans and any other term lending, the life cover remains at the original amount of the lending for the entire term.
  
  For overdrafts, the life cover is the amount of the agreed protected limit. The life policy has a nominal term of 5 years to allow for any subsequent renewal of the overdraft at the same level.

You can even cover some key people for 'life cover only', and others for accident / sickness / life cover. The choice is yours.

Eligibility
To be eligible for Commercial Payment Protection Insurance, each person insured will have to confirm a series of medical statements which are included within the application form. If they are unable to do so, this cover is not available. However, it may still be possible to organise alternative cover through our Specialist Managers – please ask at your HSBC Bank branch for an appointment.

Next Steps