A Safety Net for Business Bills
Running a business brings many challenges. When illness or injury strikes, the last thing you want to worry about is keeping your business afloat. Business Expense Insurance is your lifeline, ensuring that your fixed costs are covered while you focus on recovery. Discover how this insurance can be your financial safety net.
Benefits of Business Expense Insurance
Financial Stability
Focus on Recovery
Flexi Wait Periods
Tax Benefits
Get the Knowledge on Business Expense Insurance
What is Business Expense Insurance?
When you're self-employed, you don’t think twice about insuring business assets such as premises, stock, plant and equipment. But what about the most critical elements of your business – yourself and your financial commitments? Business Expense Insurance means that the fixed expenses of your business will still be paid even if you cannot work due to injury or sickness. It's super beneficial for small businesses with high fixed costs, that rely on the income generated by the owner.
How Does Business Expense Insurance Work?
Business Expense Insurance steps in when you can't. It provides a monthly benefit, generally for up to one year, to cover your fixed business expenses when you're sidelined by illness or injury. This means your business can keep running smoothly, bills paid, and debt at bay while you recover.
What is Covered By Business Expense Insurance?
Typical expenses covered include:
Essential Overheads:
- Accounting and audit fees
- Advertising, postage, printing, and stationary
- Utility costs (electricity, gas, heating, water)
- Telecommunications and internet
- Security expenses
- Rent, property rates, and taxes
Business Operations:
- Membership fees and subscriptions
- Leasing costs for equipment
- Bank charges and loan payments
- Insurance premiums (public liability, professional indemnity)
- Salaries and non-income generating employee costs
- Locum-related expenses
What Can't Be Insured?
Certain costs in your business cannot be insured, such as owner remuneration, fines, taxes, and capital-related expenses like furniture or stock. Understanding these exclusions is crucial to tailor your coverage effectively.
Taxation Treatment:
Business expense premiums are typically tax-deductible, but keep in mind that the insurer's monthly payments to your business are taxable.
Tailoring Waiting Periods:
Choose a waiting period that suits your business, ranging from 14 to 90 days. A longer waiting period can lower your premium while ensuring your financial security.
Benefit Period:
Typically, the benefit period is 12 months, with payments made in arrears. Premiums are waived while on claim. Business Expense Insurance can be part of your income protection policy or a separate cover.
