Corporate Protection for UK Employers
At Omny, our benefits consultants help employers design, set up and review corporate protection policies that work for their people and their budget. We advise on the full suite of group and business protection products, from group life assurance and income protection to private medical insurance, key person cover and shareholder protection.
Why Corporate Protection Matters
Group risk benefits are widely described as the foundation of any strong employee benefits package, and the reason is straightforward: they protect people against events that are not rare, not predictable and not something most individuals or families can absorb financially without employer support.
1 in 3 workers in the UK currently has a long-term health condition
That is approximately 10.3 million people. When one of those people works for you, the impact of their absence, on them, on their team and on your business, depends in large part on whether the right protection is in place.
The cost of long-term sick leave is increasing
Group income protection does not just protect the employee. It protects the business from the financial and operational impact of prolonged absence, and the rehabilitation support included with most policies helps people return to work sooner and more sustainably.
2 in 5 UK households have less than £2,000 in savings
A serious illness diagnosis or an unexpected death leaves most families financially exposed within weeks. Group critical illness cover and group life assurance change that picture immediately, providing a lump sum that allows families to manage financial obligations without compounding an already devastating situation.
We take a holistic approach to Protection
Group Critical Illness Cover
Group critical illness cover pays a tax-free lump sum directly to the employee when they're diagnosed with a covered condition. They can use it however they need: paying off a mortgage, funding treatment, or simply reducing the financial pressure of a diagnosis. Premiums are a benefit in kind, so employees pay income tax on the cost, though many employers choose to cover that too.
Group Life Assurance
If an employee dies while employed by you, the group life assurance pays a tax-free lump sum, typically a multiple of salary, to their nominated beneficiaries. When written in trust, the payment is made outside the employee's estate, meaning it is free of inheritance tax and reaches the family quickly without waiting for probate.
Key Person Insurance
Key person insurance provides the business with a lump sum payment in the event of the death or serious illness of a named key individual, giving the business the financial resources to manage the transition: covering lost revenue, funding recruitment and training of a replacement, or servicing debt that depended on that individual's contribution.
Private Medical Insurance (PMI)
For employers, PMI is one of the most visible and appreciated benefits in the package. It demonstrates genuine care for employee health in practical terms. As a group policy, it is typically far more cost-effective than individual cover, and premiums can be tailored to balance coverage levels within budget. PMI is treated as a taxable benefit in kind for employees, though employer premiums remain deductible against corporation tax.
Shareholder Protection Insurance
Shareholder protection insurance, combined with a cross-option agreement, provides each shareholder with the funds to buy the shares of a deceased or critically ill colleague, ensuring that the business remains in the hands of those who run it and that the departing shareholder or their family receive a fair price.
Frequently Asked Questions (FAQ)
What other support services are included with Group Life Assurance?
Many Group Life policies offer additional benefits, such as:
- Bereavement counselling
- Mental health resources
- Legal advice
- Employee Assistance Programmes (EAPs)
These services not only provide immediate support in times of crisis but also contribute to your team’s ongoing wellbeing.
How does Group Income Protection differ from individual income protection?
What are the benefits of offering Critical Illness Cover as an employee benefit?
- Financial Security: Immediate financial support during a critical health crisis.
- Peace of Mind: Reduced stress and anxiety about financial burdens.
- Employee Wellbeing: Demonstrates genuine care for your team’s health and financial security.
- Talent Attraction & Retention: Strengthens your employee benefits package to attract and retain skilled professionals.
How do I determine the right level of cover for my key person(s)?
At Omny Benefits, we conduct a thorough assessment of your business to determine the financial impact of losing a key individual. This includes:
- Evaluating their contribution to revenue and profitability
- Assessing their role in client relationships
- Calculating the cost of recruitment and training for their replacement
We’ll work with you to tailor the right level of cover, ensuring your business remains resilient and protected.
What are the benefits of Shareholder Protection for my business?
- Control: Prevent shares from being transferred to unintended parties.
- Stability: Protect against operational and financial disruption.
- Succession Planning: Ensure a clear, legally defined ownership transfer process.
- Peace of Mind: Provide reassurance for shareholders and their families.
What are group risk benefits?
Group risk benefits is the collective term for employer-arranged financial protection policies that pay out when an employee dies, becomes seriously ill, or is unable to work due to long-term sickness or injury. The core products are group life assurance (death in service), group income protection and group critical illness cover. These products form the foundation of most employee protection packages and are widely regarded as some of the most valued benefits an employer can provide, because they offer financial security at the moments when employees need it most.
What happens to an employee's cover when they leave?
Most group risk policies provide cover only while an individual is an active employee. When someone leaves, their cover under the group policy ends. Some providers offer a conversion option, which allows a departing employee to convert their group cover to an individual policy without medical underwriting. This is a particularly valuable feature for employees with health conditions who may find individual cover difficult or expensive to obtain elsewhere. We advise on providers and policies that include conversion options where this is relevant to your workforce.
We already have some policies in place. Should we review them?
Absolutely. Policies that were set up several years ago may no longer reflect your current workforce size, salary levels or business structure. Cover levels that were appropriate when you had ten employees may be inadequate with fifty. The insurance market also changes, with providers regularly updating their product features, added value services and premium rates. An independent review compares what you have against current market alternatives, assesses whether your cover levels remain appropriate and identifies whether you are receiving fair value on your existing premiums. We provide a free review as part of our initial consultation process.