1 . Understanding the client ’ s business interests : During initial consultations , advisers should take the time to understand whether their clients own or have significant stakes in businesses . This involves asking detailed questions about the client ’ s business interests , including the size of the business , key personnel and any existing business loans .
2 . Discussing risks and contingency planning : Once the adviser has a clear understanding of the client ’ s business involvement , the conversation can naturally shift to discussing risks . This is an opportunity to explore what contingency plans are in place should something happen to the client or other key individuals within the business . Many business owners may not have considered the full scope of risks , making this a critical discussion point .
3 . Highlighting the connection between personal and business finances : Advisers should emphasise that a business ’ s financial health directly impacts personal finances . For example , if a client has used personal assets as collateral for a business loan , the failure of the business could jeopardise their personal wealth . This connection underscores the importance of business protection as part of a comprehensive financial plan .
4 . Exploring existing coverage : Some clients may already have some form of business protection in place . Advisers can add value by reviewing existing policies to ensure they are still adequate and appropriate given the current state of the business and the client ’ s personal financial situation . This review can uncover gaps in coverage or opportunities for more efficient protection .
To effectively integrate business protection into their advice process , mortgage and wealth advisers can follow these steps :
1 . Include business protection in client profiling : When gathering information about a client ’ s financial situation , make business protection a standard part of the conversation . This can be done by incorporating questions about business ownership , key personnel and existing insurance policies into the client fact-finding process .
2 . Offer business protection reviews : For clients who already have business protection policies in place , offer to conduct a review . This review can assess whether the current coverage is still adequate and aligned with the client ’ s current business structure and goals . A regular review ensures that the business is always protected against evolving risks .
3 . Collaborate with business specialists : If business protection is not an area of expertise , advisers can collaborate with specialists who focus on business insurance . This partnership allows the adviser to offer comprehensive protection solutions without needing to be an expert in every product . Working with specialists can also deepen the adviser ’ s knowledge over time .
4 . Educate clients : Many business owners are not fully aware of the risks they face or the protection options available to them . Advisers can add significant value by educating their clients about the importance of business protection and the potential consequences of not having it . This can be done through one-on-one meetings , workshops or educational content such as blog posts and newsletters .
5 . Create tailored protection plans : Every business is unique , so a one-size-fits-all approach to business protection won ’ t work . Advisers should work with clients to create tailored protection plans that address the specific risks and needs of their business . This customisation reinforces the adviser ’ s role as a trusted partner who understands the intricacies of the client ’ s business .
Integrating business protection into the advice process offers several key benefits :
1 . Enhanced client relationships : Offering business protection deepens the adviser ’ s relationship with clients by addressing a critical area of their financial lives . Clients will appreciate the comprehensive approach and the peace of mind that comes with knowing their business and personal wealth are protected .
2 . Increased revenue streams : Business protection products can create additional revenue streams for advisers through commissions and fees . Offering these products also positions the adviser as a more holistic financial planner , which can attract new clients and referrals .
3 . Differentiation in a competitive market : In a crowded market , offering business protection can help advisers stand out . Many advisers focus solely on personal financial products , so including business protection as part of the service offering can be a unique selling point .
4 . Stronger client retention : Clients who see their adviser as a comprehensive financial partner are more likely to stay with them over the long term . By addressing both personal and business financial needs , advisers can strengthen client loyalty and retention .
For mortgage and wealth advisers , adding business protection to the advice process is not just an opportunity – it ’ s a necessity in today ’ s complex financial landscape . By understanding the risks that businesses face and integrating business protection solutions into client conversations , advisers can provide a more holistic service that safeguards both personal and business finances . Ultimately , integrating business protection into your advice process is a win-win for both advisers and their clients .
| PROTECTION ADVISER | AUTUMN 2024 | 11