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Business Expenses Insurance

Running your own business is challenging as well as rewarding, with great satisfaction to be found in the accumulation of wealth and seeing your business grow as a result of your planning and hard work.

Keeping a business running and out of debt can be difficult if not impossible for many businesses when the owner is unable to work due to sickness or injury. This is when Business Expenses Insurance can assist you and protect what you have worked so hard to achieve.

Business Expenses Insurance provides a monthly benefit, typically for a maximum period of 12 months. It covers ongoing business costs if you (the business owner) are unable to work due to illness or injury.

It is similar to Income Protection insurance, but designed for business owners and self-employed individuals.

How it works

For most business insurance products, there is a waiting period before the insurance benefit is payable. Typically, this is between 14 and 90 days. Shorter waiting periods are available, usually at a higher premium.

Business Expenses Insurance will allow you to insure up to 100% of expenses covered in the policy. This helps to keep your business running even when you are completely unable to work.

Read about the benefits of Business Expenses Insurance here.

How much Business Expenses Insurance do I need?

A number of factors can influence the amount and type of Business Expenses Insurance you choose to take on. The best way is to calculate your outgoing expenses and come up with a cash figure that will be able to cover those expenses in your absence.

Typical expenses that are covered by insurance are:

  • Business mortgage payments or loan instalments
  • Office rent
  • Equipment & vehicle leasing expenses
  • Staff salaries (roles not directly tied to company income)
  • Maintenance and repairs
  • Utility bills such as electricity, gas, water and telephone

How do Business Expenses Insurance policies differ?

Along with varied waiting periods, Business Expenses Insurance can provide special benefits such as:

  • A tiered disability definition, allowing you to work up to 10 hours a week without reducing your monthly benefit
  • A crisis benefit, with guaranteed payment if you suffer from any serious medical conditions
  • A locum benefit, covering the cost of hiring a locum to maintain the business when you are away
  • A specific injury benefit

Business Expenses Insurance should not be confused with Business Interruption insurance, which covers external trigger events such as water damage or fire, not inability to work due to health issues.

What is the cost?

Business Expenses Insurance costs can vary depending on a number of factors, including age, gender and the amount of cover required. For example, for $3.50 a day, a 30 year old female working as a sole trader in the hair and beauty industry could purchase a policy that pays a benefit of approximately $4,500 per month.

Obtaining Business Expenses Insurance quotes

We know your business is unique, as are your goals for growth and success. Wealth Smart can do an objective comparison of Business Expenses Insurance products from leading providers and present you with options that will allow you to make an informed decision that is both comprehensive and cost-effective.

Choosing a Business Expenses Insurance Broker

Every business is different, with its own targets for growth and success. Wealth Smart compares Business Expenses Insurance from leading providers and can help you find the package that is most suitable and cost-effective for your business. We will help you reach your goals, regardless of what the future holds.

Page last updated: February 10, 2015