<img height="1" width="1" style="display:none" src="https://www.facebook.com/tr?id=264357774380001&amp;ev=PageView&amp;noscript=1">

Protect The Business You Have Worked Hard to Build

16.02.2017 by GTC Financial Services

Successful small business owners generally have one thing in common, the passion and motivation to drive their business. So if you had to take time off work to recover from a serious illness or injury do you think your business would fare as well without you? Probably not.

This is why it is worthwhile considering business expenses insurance. Having business expenses insurance helps you protect the business you have worked hard to build. It means you can rest easy knowing that your business will stay afloat if you need to take time off work.

Business expense insurance – your financial back-up plan 

Business expense insurance pays you a monthly benefit to cover your fixed income expenses if you are unable to work due to serious illness or injury. This can have a significant impact on your business, especially if you’re out of work for six months or longer.

Having business expense insurance is beneficial in a number of ways:

  • It protects your business from the risk of not being able to pay its bills if you become unable to work
  • The premiums for business expenses insurance are generally tax deductible

How it works

Business expenses insurance is designed to pay a monthly benefit, for up to twelve months, to help your business cover its fixed expenses if you become unable to work for health reasons. Fixed expenses are costs incurred regardless of whether or not your business is generating output, such as:

  • office rent
  • leases on cars or equipment
  • utility bills
  • costs of insurance and security.

These fixed expenses can add up to a significant amount, especially if you’re out of work for a long period.

Your personal income protection cover is unlikely to be enough on its own
Relying on your personal income protection to cover these fixed expenses will usually result in being underinsured. This is because income protection is designed to cover a percentage of your income, not the expenses of your business. If you do suffer a serious illness or injury you will want to use the proceeds of your income protection policy to maintain your lifestyle and cover your rehabilitation expenses, not the expenses of your business.

How much cover do I need?

It’s important to get the right amount of cover for your needs so you don’t end up being under or over insured. You can get an idea of how much cover you need by looking at how much it costs to run your business. If you are in partnership with other people, you should think about how you would cover your proportion of expenses if you became unwell. The best way of ensuring you end up with the right amount of cover is by talking to us.

 

This information is of a general nature only and neither represents nor is intended to be specific advice on any particular matter. Infocus Securities Australia Pty Ltd strongly suggests that no person should act specifically on the basis of the information contained herein but should seek appropriate professional advice based upon their own personal circumstances.

 

Contact us

Subscribe to Email Updates

Subscribe To Our Blog
 
 
 
 
 

Recent Posts