Business Insurance
Business Insurance
Business expenses Insurance
Business Expenses insurance is a financial back up plan for your business, it is similar to income protection insurance , but it’s designed specifically for business owners
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.
- Insurance and security costs
- Salaries and staff superannuation (for employees who don’t generate any business revenue)
- 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.
Key Man Insurance
Providing financial protection against lost revenue, profits and the capital value of your business should a key person suffer a major illness, injury or death.
An employer may take out a Key person insurance policy on the life or health of any employee whose knowledge, work, or overall contribution is considered uniquely valuable to the company. The employer does this to offset the costs (such as hiring temporary help or recruiting a successor) and losses (such as a decreased ability to transact business until successors are trained) which the employer may suffer in the event of the loss of a key person.
Buy/Sell Agreement Insurance
When multiple individuals enter a business arrangement, one important financial planning element is to ensure a smooth transition of ownership in the event of the death, the disablement or a traumatic health episode of an owner. This is the role of buy/sell agreements in business succession planning.
When one of the owners passes away, the remaining business partners may not want a successor of the deceased owner to become an integral part of the business. The chosen successor may not have the necessary business expertise to be one of the owners. Buy and sell life insurance agreement ensures that the position is given to the most suitable candidate with the experience to help the business continue to prosper.
37 per cent of business owners have heard of buy/sell insurance cover, only nine per cent actually have it.*
*Ross Cameron Research: The Australian Small Business Market for Financial Services, July 2008