15 Jun Protect The Business You Worked Hard To Build
Protect The Business You Worked Hard To Build
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 to protect the business you’ve created. 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 youâ€™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 youâ€™re out of work for a long period.
Your personal income protection cover is unlikely to be enough on its ownRelying 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