Business protection is an insurance policy which is designed to pay a cash lump sum to a company should the person insured die or contract a critical illness. The person in the business may be a key person such as a director or partner. The policies are life insurance and critical illness cover policies, but they are written in trust, so the money can go back into the business.
An example of where this could be effective is, if one of the directors of your company dies then how would the business be affected? Could the business survive without that person?
The idea that the money from the insurance policy would be sufficient to repay the surviving family the shares that director owned in that business, as well as leaving enough money to replace that person with someone else who could do the old directors job. It will also give enough money for the business to continue trading for a little while whilst you replace the deceased person.