June 2021

Ensuring your business is protected during uncertain times

Posted on 30 June 202130 March 2025 by Sophie Soraf

Businesses across many different sectors are slowly getting back on their feet as the economy continues to improve following the pandemic. This crisis has shown that in times of great challenge, your employees – their skills, knowledge and understanding of how your business ticks – are essential to keeping your business running.

So looking after your employees and your business go hand in hand. In a recent survey, 35% of businesses said one of the top three risks to their business would be an owner becoming critically ill and being unable to work. 52% said they would cease trading within one year were they to lose such a key person, and yet, surprisingly, only 18% had considered cover for the illness or death of a key person. (Source: Legal & General’s State of the Nation Report 2021). That’s very curious but the message of this article is: don’t be that business! There are two key groups of insurance that can help protect your business and employees from financial losses resulting from illness and death.

Policies that protect your business against financial losses resulting from the death or illness of a key staff member or business partner, and
Insurance that provides financial assistance to employees and their families in the event of their death or inability to work.

Protecting your business

When might I need shareholder/partnership protection insurance?

Shareholder or partnership protection cover insures a business against the loss of a shareholder or key business partner, which would likely leave the remaining business owners in a precarious position. With limited companies or partnerships, the main risk is that the deceased owner’s share in the business will be passed on to a family member, who may have little interest in taking over their role.

Essentially, shareholder or partnership protection insurance is a life insurance policy that pays out to the surviving business owners, based on an agreement that they will use the money to purchase the deceased’s outstanding shares in the business.

The cover you take out will depend on your business structure:

Shareholder protection is designed for limited companies, with the life insurance taken out on the lives of the company’s shareholders.

Partnership protection is designed for partnerships and limited liability partnerships, with the life insurance taken out on the lives of the business partners.

The policy might also include critical illness cover, in the event that a partner or shareholder does not wish to continue their involvement in running the business following their treatment or recovery from a serious illness.

Is key person insurance appropriate for my business?

Key person insurance protects businesses against the financial losses incurred if a ‘key’ employee becomes ill or dies while working for the company. This could be a CEO, business partner or senior employee considered essential to the successful running of the business. A payout from this kind of insurance can keep a business trading while recruiting for a replacement or undergoing reorganisation.

Some types of business insurance, such as employers’ liability, are legally required to run a business. Key person insurance is not one of them, but the loss of a key employee could affect the business in many ways.

Clients may react negatively or lose confidence in the business, shareholder confidence could plummet, and the skill, knowledge and experience of the key employee may be difficult, or even impossible, to replace.

Particularly for small businesses, losing a director or head of department could result in the company’s collapse, which is why the financial assistance provided by key person insurance could prove to be a lifeline.

Protecting your employees

How do my employees benefit from death in service insurance?

Also known as relevant life assurance, death in service is a type of insurance that pays out a tax-free lump sum to an employee’s beneficiaries if they die whilst working for your company. They don’t have to be at work or performing a work-related activity to receive the benefit; they simply have to be on the payroll of your company when they die or are diagnosed with a terminal illness.

This type of insurance is the second most valued employment benefit after private medical insurance, as can help your employee’s beneficiaries with costs such as funeral arrangements and living expenses at a very difficult time. The lump sum paid out is usually between two and four times the employee’s basic salary.

How will group private medical insurance benefit my business?

As mentioned above, group private medical insurance is one of the most popular employee benefits a business can offer, and provides your employees (and often their families) with access to private healthcare services.

While it is one of the more expensive employee benefits, private healthcare can offer immeasurable advantages –not only to your employees, but to you as a business. Employees will not be forced to take days off to access healthcare appointments, as private facilities usually offer appointments out of hours. They won’t face lengthy waits for appointments or treatment, so they can get better sooner and return to work more quickly.

The Coronavirus crisis has made us all too aware of the strain and pressure under which the NHS has been placed – there is now a huge backlog of patients waiting for treatments and routine surgical procedures. Offering your employees access to private healthcare is therefore a bigger draw than ever and could greatly help you to attract and retain the best talent.

Is permanent health insurance a good option to protect my employees?

Arranging permanent health insurance (or PHI) on behalf of your employees provides protection for them in the event of an injury or long-term illness that renders them unable to work.

PHI is another name for income protection insurance, but the premiums are paid by the business rather than the individual. The usual payout is between 50% and 75% of an employee’s full salary, potentially until they retire, and it can help your employees continue to pay for key outgoings such as mortgage and childcare costs until they are able to return to work. As such it is often considered by employees to be a more valuable benefit than private medical insurance.

The benefits usually start after a ‘waiting period’ of up to 52 weeks, typically after work-related sickness pay comes to an end.

The wording of PHI polices from different providers can vary greatly in terms of what exactly they cover, so it’s always best to check the fine print. As an employer, they can benefit you by incentivising your employee to return to work as soon as they are ready, in order to regain 100% of their salary.

What benefits your employees, benefits your business

Insuring your business and employees against financial loss, illness and death may be an added expense, but it could be the move that helps your business stay afloat during uncertain times. At Tees, we’re here to discuss your business insurance needs and advise you on which type of policy could deliver the greatest benefits to your organisation.

This material is intended to be for information purposes only and is not intended as an offer or solicitation for the purchase or sale of any financial instrument. Tees is a trading name of Tees Financial Limited which is regulated and authorised by the Financial Conduct Authority. Registered number 211314.

Tees Financial Limited is registered in England and Wales. Registered number 4342506.

Inquest concludes after Suffolk postmaster’s tragic hospital death

Posted on 16 June 202130 March 2025 by Sarah O'Sullivan

An inquest at Suffolk Coroner’s Court in Ipswich, conducted by Mrs. Catherine Wood, has heard evidence regarding care and service delivery issues while investigating the tragic hospital death of a 73-year-old man who had been admitted for treatment of a fractured hip.

Background

The patient, Barry Jefferson, had worked for many years alongside his wife Sarah at their Post Office Stores business in Thurston, near Bury St Edmunds. They were close to finalising plans to sell up and spend more time with family, including their young grandchildren.

On 17 August 2020, Barry tripped at home and fractured his right hip, which had previously been replaced. After relatively straightforward surgery was performed on the periprosthetic fracture at West Suffolk Hospital on 20 August, he was slowly recovering in the orthopaedic ward and appeared to be doing well.

Bloating and swollen abdomen

Placed in a side room due to a positive MRSA test, by 27 August Barry was unwell with nausea and vomiting. During the August Bank Holiday weekend, he told nurses he felt bloated and had a swollen abdomen. The nursing team consulted doctors on call, who prescribed medication for bloating.

Over the course of the bank holiday weekend, Barry became increasingly unwell. Despite repeated escalation from the nursing staff, he was only reviewed by very junior doctors, going five days without review or input from senior clinicians. In addition, following clinical reviews, documentation was often poor or missing, and there appeared to be a lack of understanding of the changing clinical picture.

On Tuesday 1 September, a review by the advanced nurse practitioner pointed to a possible infection, source unknown. At this stage, Barry had not been reviewed by a senior clinician since before the weekend, and there had been no proper investigations into his abdominal distension. Antibiotics and fluids were administered intravenously, but Barry became more unwell overnight and began vomiting.

A consultant conducted a further review in the afternoon and, suspecting a possible bowel obstruction, ordered nil by mouth and an abdominal X-ray. The X-ray that afternoon showed distended loops of small bowel consistent with an obstruction.

Following the X-ray and referral to the surgical team, Barry suffered further deterioration, and an emergency call was activated. Probable irreversible organ failure was suspected when he did not respond to resuscitation treatment by the emergency team. Sadly, he died a short time later.

Care and service delivery issues

Following Barry Jefferson’s death on 2 September, ultimately due to cardiac arrest, a Serious Incident Report was completed by West Suffolk NHS Foundation Trust. This identified a number of care and service delivery issues and pointed to several root causes.

“The report highlighted a series of delays in recognising deterioration in Barry’s condition during that fateful bank holiday weekend and tardiness in seeking senior reviews and investigations,” explains Tees Law, acting for widowed Sarah Jefferson.

“A more timely response earlier in the weekend might have led to a different outcome in this case. Establishing why things went so badly awry has not been helped by a repeated lack of documentation by the junior doctors who reviewed Barry, it being recorded during the inquest that the documentation fell far below what would have been expected from a junior doctor.

“Review by a senior clinician should have occurred sooner, with particular emphasis over the bank holiday weekend. This could have led to an urgent surgical review, with investigations such as the abdominal X-ray and nasogastric tube insertion occurring sooner.

The inquest heard from a senior member of the Hospital Trust who confirmed that the Trust had found that a lack of appropriate senior review over the Bank Holiday weekend led to a failure to recognise Barry’s deterioration, late investigation, and late treatment.

There was further found to be an inconsistent approach to the handover of patients out of hours, leading to poor communication between teams, failure to review or monitor for deterioration, and delay in escalation of a sick patient. The lack of a Sick List meant that patients who required close monitoring were not routinely monitored or reviewed.

Measures implemented

Following the Trust’s internal review, a number of measures have now been put in place, including a revised handover within the surgical division, use of a Sick List during handovers for general surgery and orthopaedic teams, development of a Standard Operating Procedure for a revised handover process, as well as shared learning in respect of escalation of patients and the importance of documentation to junior doctors.

A second ortho-geriatrician to the surgical division is also being recruited to work towards the Trust’s goal of every orthopaedic patient receiving a review by a senior doctor Monday to Friday, with senior surgical review out of hours as needed.

“Sarah Jefferson is grateful to the Coroner for the thorough investigation into Barry’s death. Hopefully, following the Hospital Trust’s findings and the measures that have been implemented since Barry’s death, the incidence of failures to escalate the response to clearly deteriorating patients will have been greatly reduced.”

Advice on opening a French branch or subsidiary post-Brexit

Posted on 15 June 202123 March 2025 by Sarah O'Sullivan

Brexit has introduced significant barriers to trade between the UK and the EU. Many companies are struggling with increased red tape, delays, and complex restrictions, making cross-border business more challenging than ever.

To mitigate these difficulties, a growing number of UK businesses are considering establishing a branch office or subsidiary in France. With its streamlined processes and strategic location, France offers one of the quickest and most practical solutions for maintaining an EU presence.

In this guide, we’ll explain the differences between a branch and a subsidiary, walk you through the setup process, and outline key legal considerations.

Branch vs. Subsidiary: Which is right for your business?

Choosing between a branch and a subsidiary depends on your business goals. Each structure has its advantages and legal implications.

What is a Branch?

A branch is an extension of your UK company rather than a separate legal entity. It has no independent legal personality, simplifying the setup process.

Benefits of a French branch:

Faster and easier setup
No need to draft new statutes or incorporate a separate entity
Cost-effective compared to a subsidiary

Key requirements:

Provide certified French translations of company documents (e.g., Articles of Association)
Register with the French Commercial Court Registry
Publish an announcement in a legal journal

What is a subsidiary?

A subsidiary, unlike a branch, is an independent legal entity incorporated under French law. While it requires more administrative effort, it offers greater legal protection and operational flexibility.

Benefits of a French subsidiary:

Separate legal responsibility from the parent company
Easier to establish business contracts with French companies
Enhanced credibility in the French market

Key steps to set up a subsidiary:

Draft company statutes
Open a corporate bank account in France
Register the company with the Commercial Court
Appoint a legal manager and accountant

Hiring employees for your French Office

Both branches and subsidiaries can employ staff. However, French employment law will apply, and it’s crucial to comply with local regulations. During the initial phase, you can second employees from your UK company for up to 12 months, subject to renewal in certain cases.

Important Considerations:

Employment contracts must meet French legal standards
French law mandates public order rules that cannot be waived
Provide competitive salaries and benefits in line with French norms

Navigating French Commercial law Post-Brexit

Since Brexit, many French companies prefer formal contracts governed by French law. It’s essential to understand key principles in French commercial law, including:

Duty to inform: Businesses must disclose critical information during negotiations.
Abuse of dependency: Contracts may be invalidated if they result from an imbalance of power.
Unilateral price setting: Allowed in framework contracts, provided prices are justified.
Imprévision: Contracts may be renegotiated in the event of unforeseen circumstances.
Contract termination rights: Contracts without end dates are terminable without notice.

Resolving commercial disputes in France

Commercial disputes in France are handled by specialised Tribunaux de Commerce, ensuring faster, cost-effective resolutions. The Paris Commercial Court even has an international division with English-speaking judges, providing a practical option for UK businesses.

Partner with French legal experts

Setting up a branch or subsidiary in France can provide significant advantages in navigating Brexit trade challenges. Our specialist French Avocat Hervé Blatry offers tailored legal support, guiding you through every step of the process.

Essex Cricket unveil the Tees River Gate

Posted on 14 June 20211 April 2025 by Sarah O'Sullivan

Essex Cricket are delighted to announce the opening of the new-look Tees River Gate in partnership with local law firm, Tees.

Tees have been a partner of Essex Cricket since 2017 and are extending their relationship with the Club through the revamped entrance, which is overlooked by their Chelmsford offices.

Members will get a chance to use the gate for Essex Eagles’ opening Vitality Blast fixture against Hampshire Hawks on Friday 11 June as the Club continue to welcome back spectators once again.

As well as the new gate, supporters will also be able to walk through the Champions Walkway and bask in the glory of the team’s recent successes in both the long and short formats of the game.

Ashton Hunt, Group Managing Director at Tees Law, said: “We couldn’t be more excited to take our partnership with Essex Cricket to the next level with the new Tees River Gate. The walk to a sports ground is a nostalgic experience and we’re delighted to add to that with the new gate and Champions walkway, which sit adjacent to our offices.”

John Faragher, Executive Chairman at Essex Cricket, said: “The Cloudfm County Ground is a truly special place during the T20 campaign and we can’t wait for our loyal supporters to finally see us play white-ball cricket live in person again. The new Tees River Gate will make this experience even more special for fans and they’ll get to toast our past successes on their way into the ground.”

Essex Cricket are teaming up with Tees to offer more treats to supporters in June. The first 50 fans to enter via the Tees River Gate during our Vitality Blast fixture against Kent Spitfires on Friday 25 June will receive a complimentary drink on arrival.