BUSINESS ASSURANCE
Strengthen your business clients’ future – and their Profit-Share
By Murray Visser, PPS Senior Technical Marketing Specialist
In today’ s competitive professional market, it is essential that your clients safeguard the continuity and financial stability of their businesses. Whether a partner in a law firm, a medical practitioner, an accountant in private practice or an entrepreneur running a successful company, your client’ s business depends on key individuals, strategic partnerships and ongoing financial commitments.
PPS Business Assurance is a crucial tool intended to protect businesses from the financial risks that occur when a partner, director or key employee passes away, becomes disabled or suffers a critical illness. It offers a structured approach to managing risk, preserving operations and safeguarding all stakeholders.
Here are the key elements of business assurance and how each one helps safeguard the future of a business:
BUY-AND-SELL INSURANCE: PROTECTING BUSINESS OWNERSHIP A buy-and-sell agreement allows business partners to agree in advance on how ownership will be handled if one of them passes away or becomes permanently disabled. Business assurance is taken out on each partner, with the others as beneficiaries. Fundamental rules of insurance allow partners in businesses to have an insurable interest in each other’ s lives. This insurable interest exists to safeguard the prospects of the business during unfortunate circumstances.
KEY PERSON INSURANCE: SAFEGUARDING OPERATIONS Some graduate professionals, like a senior partner, a lead consultant or a top performer, are vital to a business’ s daily functioning. If a key individual is lost, operations can be severely disrupted. Key person insurance acts as a financial cushion to help the business recover quickly and continue operating without compromising service or reputation.
CREDIT LOAN INSURANCE: SETTLING INTERNAL DEBT Owners often lend money to their businesses through a credit loan. These are typically informal loans from shareholders or partners to help fund operations or growth. If an owner passes away, the estate may legally request repayment of the loan. This cover provides peace of mind for the business and the deceased’ s beneficiaries, allowing business operations to continue unhindered.
CONTINGENT LIABILITY INSURANCE: PROTECTING PERSONAL SURETIES Many business owners sign personal sureties for business loans. Essentially, using their personal assets to guarantee business debt. If one of them passes away or becomes disabled, lenders may claim against their estate or surviving partners. This ensures that a guarantor’ s death or disability does not trigger financial hardship for their estate or disrupt the company’ s credit relationships.
SPECIAL OFFER There is a special offer on Business Assurance that will end on 30 September 2025. PPS members with existing PPS Business Assurance policies can apply for up to R20 million additional cover. Prospective PPS members may convert their like-for-like Business Assurance
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