Business Expenses

Business Expenses insurance

Piece of mind for business owners

Business expenses insurance is similar to income protection insurance , but it’s designed specifically for business owners.
As the name suggests, business expenses pays a monthly benefit – generally for a maximum of 12 months – to cover business costs if you (as a business owner) suffer an illness or injury and are unable to work.
You can generally choose a waiting period between 14 and 90 days, after which the insurance benefit becomes payable. A shorter waiting period usually means a higher premium.
Business expenses insurance is different from business interruption insurance, which is not related to your health or ability to work. Instead, business interruption insurance pays you a monthly amount to cover business expenses if an external trigger event occurs such as fire or water damage.

How much is enough?

The right amount of business expenses insurance depends on a range of factors. For example, to what extent would the business owner’s absence affect their ability to meet expenses? And what are their specific ongoing expenses?
Some things to consider include:
  • Staff salaries (non income-producing roles)
  • Rent on your place of business
  • Phone, gas and electricity
  • Leasing expenses for equipment and vehicles
  • Repairs and maintenance.

Business expenses premiums are usually tax deductible, and can be packaged with income protection insurance to make sure both your personal income and work expenses are covered.

Business expenses insurance from Lifestyle Loans

Our Financial Advisers can work with you to determine an appropriate level of cover for your needs. And because we undertake an assessment of your current situation and medical history, the insurance you’ll receive is likely to be more relevant and cost-effective.

Business expenses insurance can include special benefits such as:

  • a three tier disability definition, which allows you to work for up to 10 hours a week without that income affecting your monthly benefit
  • a specific injury benefit, which guarantees payment for a specified amount of time if you suffer from a list of injuries
  • a crisis benefit, which guarantees payment if you suffer from a list of serious medical conditions
  • locum cover, which can reimburse the cost of employing a locum to maintain the business in your absence.
To discuss your own insurance needs, please make a no-obligation appointment with a Lifestyle Loans Financial Adviser.