Protect business borrowing
Provide funds to help repay business borrowing following an insured death or covered critical illness.
A clearer view
Businesses with loans, commercial mortgages, overdrafts or other borrowing that could become difficult to manage following the loss of a key individual.
Provide funds to help repay business borrowing following an insured death or covered critical illness.
The sum insured, term and policy ownership need to suit the borrowing. Cover does not automatically release a personal guarantee or change your loan agreement.
Clearbrook in practice
Anonymised examples of our advice. Each reflects the client’s circumstances at the time. Where we describe a recommendation or proposal, this does not imply the cover has been put in place.
A nursery business needed to consider how its commercial mortgage would be repaid if either owner died.
We recommended decreasing life cover with an initial amount matched to the outstanding mortgage and a term aligned with the remaining loan period. Separate shareholder protection addressed the ownership of the business, so the borrowing and share-purchase needs were considered individually.
Your questions, answered
These answers explain the general principles. Your recommendation will depend on your circumstances and the policy terms.
Bring details of business loans, commercial mortgages, overdrafts and money lent to the company by directors. We can review which risks need protection and whether an appropriate insurance arrangement is available.
This type of cover generally provides a lump sum following a valid insured event. It is not automatically a monthly repayment policy, and it does not cover an ordinary fall in sales or cash flow.
That depends on the debt. A repayment loan may suit decreasing cover; borrowing that stays broadly constant may need level cover. The policy’s reduction assumptions must be considered against the actual loan.
No. The lender’s guarantee remains a separate obligation. A suitable payout may help repay the debt, but the loan and guarantee terms still need to be checked with the lender and your legal adviser.
Yes, include it in the review. We need to understand who owes money to whom, the balance and repayment terms. That helps determine the protection need and how any policy should be arranged.
Premiums for cover protecting business capital are generally not eligible for tax relief. The precise tax treatment of premiums and proceeds depends on the arrangement; ask your accountant to confirm it.
General information checked against these sources on 15 September 2026. Individual insurers’ terms vary. Tax rules and their application can change.
Start with a conversation
Tell us about your business, your existing cover and the people who depend on it.
Consider the wider picture
Protect your family
Life insurance paid for by your company, designed to support your family if you die during the policy term.
Explore relevant life cover
Protect against the loss of a key person
Financial support for your business if someone it depends on dies or suffers a covered critical illness.
Explore key person cover
Protect business ownership
Help the remaining owners fund a share purchase following an insured owner’s death or a covered critical illness, with insurance arranged alongside an appropriate legal agreement.
Explore shareholder protection
Support your team’s health
Private medical insurance for directors and employees, recommended and arranged around your team’s needs and budget.
Explore business private medical insurance