A husband-and-wife team ran a specialist clinical practice, with both directors actively involved in delivering assessments, therapy and ongoing patient support. Their expertise was central to the services the practice provided, making the business heavily dependent on their ability to continue working.
The directors had no existing protection in place. If either became unable to work through illness or injury, the financial impact could affect both their household and the practice. Their personal income depended on the business, while the business depended on their day-to-day involvement.
The protection requirement therefore extended beyond replacing an individual’s earnings. It also needed to address the financial disruption the practice could face if a director was absent for a prolonged period, became seriously ill or died.
Onozzi recommended a combination of executive income protection, using an ‘own occupation’ definition, and key person cover. Together, they were intended to protect the directors’ income and provide the practice with separate financial support following a covered event.
We treated the directors’ income needs separately from the wider financial disruption the practice could experience. This helped establish the purpose of each element of cover rather than treating the risks as a single requirement.
The executive income protection element was intended to provide a regular payment to the business if an insured director could not work because of illness or injury. The ‘own occupation’ definition assessed an inability to work against the duties of the insured person’s occupation, which was particularly relevant where earnings depended on specialist clinical work.
The key person element focused on disruption beyond the director’s personal income. A lump sum following an insured director’s death or a covered serious illness could help fund temporary support or meet a financial shortfall while decisions were made about staffing and services.
The proposed arrangement also included access to health support services, such as remote GP appointments, physiotherapy, mental health support and second medical opinions. These complemented the financial protection by offering access to practical support, subject to the relevant service terms.
The resulting recommendation gave the directors a combined approach to protecting their household income and the practice. It addressed the financial consequences of losing a director’s clinical contribution as well as the need to maintain income during illness or injury.
Once confirmed as in place, the cover would provide financial support following a valid claim, giving the directors more room to manage an absence and the practice more resources to respond to disruption. The intended benefit was greater financial resilience for a business in which the owners’ health, household income and ability to serve patients were closely connected.
