Business expenses cover pays a monthly benefit, generally for a maximum of 12 months to cover your fixed business costs if you (as a business owner) suffer an illness or injury and are unable to to work.
It is designed to assist with helping your business operate whilst you recover.
What does it do?
Business Expenses Insurance is designed to do just what it says, help protect your business in the event of you being unable to work due to sickness and or injury. It can cover fixed expenses such as:
• Staff salaries
• Rent on your place of business
• Phone, gas and electricity bills
• Leasing expenses for equipment and vehicles
• Repairs and maintenance expenses
What is the Benefit?
The business expense cover is generally worked out by assessing your previous 2 years profit and loss statements and working out an average monthly cost for your allowable business expenses.
The benefit will be paid to you on a monthly basis following the completion of the waiting period, and will continue normally until you either return to full time work, or the benefit period of the policy has been reached. A partial payment can also be made in the event you were to return to work part time.
How much Business Expenses Protection can I get?
The amount of cover is based on the allowable business expenses incurred each month and is known as the monthly insured amount.
How does the policy work?
Business Expense cover while being fairly simple in its operation is potentially complex when it comes to the policy structure. Waiting periods can range from 14 days through to 90 days years and the benefit period is normally 12 months.
There are many optional benefits available to speed up benefit payment times, or to help with rehabilitation. Your adviser will discuss these benefits with you and help to work out a policy that best suits you.
Business expenses premiums are usually tax deductible, and can be packaged with income protection insurance to help make sure both your personal income and work expenses are covered
Where to from here?
Following discussions with your adviser, they will make written recommendations, outlining the policies and sum insured, waiting periods and benefit periods that will meet your current circumstances. Again care must be taken to understand the policy’s definitions. From there, a personal medical statement along with evidence of your business expenses is normally all that is required to have the application process started, however, sometimes depending on your medical history, blood tests or a medical appointment may be required. From there, your advised will liaise with you through to the acceptance and completion of your policies.
What happens if a claim is made?
In the event a claim is made, your adviser will try and make the process as simple as possible for you. Claim forms will need to be completed, identification documents and medical records / doctor’s report will need to be obtained, and your adviser will help with this and liaise with the insurer. The insurer has a dedicated claims team, and a claims assessor will be allocated to help you through this process.
IF YOU WERE UNABLE TO WORK FOR A PERIOD OF TIME, HOW WOULD YOU COVER YOUR BUSINESS EXPENSES?