Business Expense Insurance

Business Expenses allows you to insure monthly business expenses on a monthly reimbursement basis, to help keep your business viable if you can’t work because of sickness or injury.

How would your business survive without you?

What would happen if you had to take time off work because of sickness or injury?

Or worse, if you could never go to work again?

If you run your own business, the consequences could often be dire – for you, your family, and your employees.

Business Expense Insurance provides a monthly payment if you are sick or injured, helping you cover fixed business costs including:

• staff salaries (non income-producing roles)
• rent on your place of business
• interest on borrowings.

Some features available under this type of insurance:

A Partially Disabled Benefit will usually be available: with some providers it allows you to receive a benefit, even if you are working on a limited basis, provided you meet certain conditions.

A Recurring Disability Benefit, if available, will mean that there will be no waiting period if the same disability recurs within six months of the original claim.

Where Locum Cover is provided, it can reimburse the ‘net’ cost of employing a locum to maintain the business in your absence.

Group/ Packaging discounts are usually available if you and your family take out multiple policies at the same time with the one provider.

Did you know?

Business Expense insurance premiums may be tax-deductible, which could significantly reduce the effective cost of your insurance.

A Case Study: John’s story

Five years after setting up as a painter and decorator, business was booming for John. He had taken on an apprentice and a lease on new premises. His ad campaign in the local papers was paying off, and he had a steady stream of work. At the same time his expenses were beginning to mount up. Then one Saturday, while opening the bowling for his cricket club, John fractured his right ankle. His doctor was adamant – painting was out of the question for the next few months.

Fortunately, he had taken out Business Expense insurance that would cover his ongoing fixed business expenses for up to $2,500 a month. This included rent, insurance, advertising and the phone lease.

When you’re off work, your business expenses still add up. If John hadn’t been covered he might have had to lay off his apprentice. Three months later John is back on the ladder – but his bowling career has been modified.

Although the names have been changed, this is based on an actual claim – courtesy, Asteron.