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Business Income Protection

Owning your own business is an incredibly rewarding experience, but it does come with its own challenges. Have you ever thought how your business would cope if you were unable to work? What about if one of your key employees in your small business was sick or injured – how would you cover their role without the business suffering?

You may have already considered personal Income Protection, but for small business owners and the self-employed, Business Income Protection is an essential part of your business plan.

There are three key types of Business Income Protection which you should consider:


Business Expense Insurance

If you run your own business or you are self-employed, Business Expense Insurance is an essential form of protection. In the event you as the business owner become sick or injured and are unable to work, Business Expense Insurance will help you cover the fixed costs of running your business while you are gone.

You can apply for up to 100% cover with Business Expense Insurance, which you will receive in monthly payments for a maximum period of typically twelve months. This may increase or decrease depending on the conditions in your policy.

You can use your benefits to cover the cost of your business mortgage or loans, rent, vehicle and equipment expenses, staff salaries, bills and maintenance and repairs.

Keyman Insurance

Have you ever considered what would happen to your business if one of your key employees became sick or injured and was unable to work? Keyman Insurance is designed to protect you from the impact of losing a key employee for an extended period of time by providing a fixed sum payout.

There are four categories of loss in which you can make a Keyman Insurance claim:

  • Loss of key staff for an extended period
  • Profit protection
  • Financing personnel
  • Partnership interests and shareholders.


Group Income Protection

Buying a Group Income Protection policy doesn’t mean that you’re paying for the personal Life Insurance of each of your staff members; it just allows you to give your team access to cheaper Life Insurance.

This combined policy is an attractive employee benefit, and while it may not directly help your business monetarily, it can help you attract and retain employees. It can also protect your business financially as you may not need to pay out sick leave for an extended time if your employees have Income Protection, and you will not feel guilty about not continuing to pay the sick person’s salary while they are away.

Talk to a Wealth Smart advisor today!

If you want to learn more about your Income Protection options for your business, and find the right policies at the best price, contact one of our expert advisors. With knowledge and expertise, our advisors will be able to understand the complexities of your business, and talk you through the options available to you and your business.

Page last updated: January 23, 2015