What's loan cover and do I need it?

It’s becoming more common for financial institutions to ask for some form of protection to be in place to make sure any loans can be repaid. The loss of a key individual could affect the ability of the business to pay back any loans. Financial institutions will often lend money to businesses based on one or two key people in that business. If something happens to either or both key people, the financial institution would probably want the loan to be repaid.