BUSINESS EXPENSE INSURANCE

//BUSINESS EXPENSE INSURANCE
BUSINESS EXPENSE INSURANCE 2017-09-11T17:20:16+00:00

PROTECT YOUR BUSINESS!

With business and personal debts to their name, small business owners have a lot of reasons to protect themselves financially. So why ignore the risks?

Business expense insurance can help to keep your business running if you are unable to work due to temporary illness or injury. This may be particularly appropriate for a sole trader.

This type of insurance will usually cover up to 100% of your eligible business expenses, for example rent/lease payments, interest costs, accountant’s fees, telephone, electricity, etc. However, not all expenses are covered so you should check the policy wording before taking out a policy.

Alternatively, if you run a larger business you may need to consider life, trauma, TPD or income protection insurance to cover ‘key’ employees or your business partners in case they die or become disabled and are unable to work. This type of insurance protects your business in the event of the loss of a person who makes a significant contribution towards the profitability or stability of the business. As an example, ‘key person’ insurance may provide the business with a lump sum that could be used to either hire a temporary replacement, cover costs of training a new staff member or just compensate the business for any reduction to profit.

The premiums may be deductible as a business expense depending on the insurance purpose and the proceeds may also be considered taxable income.

Having so much at stake, both emotionally and financially, might be great for motivation. But it’s not so great if something happens to you and you can’t work. And it can be even more devastating if you’ve got a family depending on you.

Make it your business to get the advice, and the cover, you need.

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