Case Study: Mrs P. from Bridport
Background
Mrs P. and her husband co-founded a legal services firm specialising in family law. As accredited solicitors, they built a successful practice together, employing five admin staff to support them.
While Mrs P. had Life Insurance and Critical Illness Cover in place, the business itself had no protection , and her husband was uninsured.
The Diagnosis
At the age of 57, Mr P. was diagnosed with terminal cancer. Mrs P. stepped away from the firm to become his full-time carer. Without either of them working, the business had no income. They couldn’t afford to hire another solicitor, staff wages went unpaid, and overheads quickly became unmanageable. Their personal savings were soon depleted.
The Outcome
With no Business Protection in place, they were forced to let go of the practice they had worked so hard to build. The financial strain added to an already deeply distressing time.
In Mrs P.’s words:
“Looking back, I deeply regret not having business insurance. It could have eased the financial burden and ensured continuity for our firm during the most difficult chapter of our lives.”
Summary
Type of protection missing:
Reasons cover would have helped include:
- Terminal illness diagnosis of either business partner
- Lump sum payment provision upon terminal illness diagnosis of Mr P
- Funds to pay for temporary staff to help with the running of the business
Consequences:
- Loss of income
- Inability to pay staff or cover costs
- Personal savings depleted
- Closure of the business