Have you ever considered what would happen if you were unable to meet your ongoing business expense obligations? Often, business owners hesitate to take a single day off simply because the business cannot afford it. What if the business owner has an illness or injury that required them to rest for some time? For small business in particular, this could have grave implications:
• You may no longer be able to pay staff salaries
• You may be late on paying rent on your premises
• Phone, gas and electricity bills might not get paid on time
• Leasing expenses for equipment and vehicles may remain unpaid
• Repairs and maintenance might not take place as it can no longer be afforded
• Loss of morale amongst staff as you may be the one holding the team together
• Loss of clients
• Loss in profits is highly likely as the business’ key person is not available
The answer is simple. Business expense insurance. Business Expenses insurance is a type of cover that ensures your ongoing business expenses for which you as the business owner are responsible can be met should you be temporarily unable to work due to injury or illness. Business Expenses insurance generally reimburses you for certain regular business expenses such as:
• Rent for business premises
• Utilities such as gas, water, internet and electricity
• Lease costs for equipment
• Help cover your fixed business costs and keep your business afloat while you are recuperating.
When most people think of insurance they think of protecting valuables. Home insurance – because I must protect my valuables and contents. Car insurance – because I need protection in case of an accident. Life insurance – because I want to make sure my family’s lifestyle is protected if I am not around. All of these insurances are important to our personal lives but what about protecting the life of your business? A business owner, who has financial obligations to meet on a daily basis, needs to think about more than that and should consider business expense insurance.
Commonly small businesses experience a sharp drop in profits and staff morale when the key business owner or manager is not able to keep up the momentum and produce sales due to illness or injury. Verdure Financial Planning Solutions can help ease the pressure that arises at this critical time with one of our tailored business insurance solutions. It’s because the world does not stop when you are out of action! While your revenue decreases, your business must still cover overhead expenses such as wages, rent and leases. With the help of our friendly and experienced team, your business expense insurance policy safeguards your business against your absence at work.
As the name suggests, business expense insurance pays a monthly benefit – generally for a maximum of 12 months – to cover ongoing business costs if you (as a business owner) suffer an illness or injury and are unable to work. You can choose a waiting periods of between 14 and 90 days, after which the business expense insurance benefit becomes payable. A shorter waiting period usually means a higher premium.
Business expense insurance is similar to income protection insurance, but is designed specifically for business owners who want to protect the ongoing expenses incurred in running a small business such as a law firm, GP practice or cafe. At Verdure Financial Planning Solutions we pride ourselves as being thought leaders in this area of insurance.
With over thirteen years of industry experience and a passion to help small business succeed, Katriel Warlow-Shill and the team at Verdure Financial Planning Solutions are able to assist you in finding the most suitable business expense insurance policy. We understand how important your business is to you! You have worked hard to establish your business, let’s talk about protecting it from unforeseen events! Verdure Financial Planning Solutions have the skills and expertise necessary to insure your business before unforeseen events happen.
Please do not hesitate to contact our friendly office staff if you have any questions that we may assist you with. If any of your personal circumstances have changed, such as a change in income or growth in your family, then please let us know to ensure your details are up to date and your insurances adequately cover your needs.
Katriel Warlow-Shill and SMSF Insurance Specialists Pty Ltd atf SMSF Insurance Specialists Trustt/as Verdure Financial Planning Services are Authorised Representatives of Synchron Australian Financial Services Licensee No. 243313.