What is Business Expense cover and who should get it?
Business Expense cover, or Key Person insurance, can be tailored to fit your business’ financial needs. This form of insurance covers business expenses for Australian businesses if the life (person) insured is unable to work due to sickness or injury. There are two main types of Business Expense cover available, ongoing fixed expenses cover and key person replacement.
Ongoing fixed expenses cover is a claim based on the allowable business expenses incurred each month by the person insured (up to the maximum monthly benefit). This generally includes costs such as utilities, rates, rent of office space or repayments on your property loan.
Key person replacement on the other hand is a claim based on the key person replacement costs incurred each month by the person insured (up to the maximum monthly benefit). If no replacement costs are incurred, then no benefit is payable.
What are the benefits of Business Expense cover?
Business Expense cover is a simple way to protect your business and wellbeing. By making fixed monthly or annual payments from your business account, you can secure the financial safety of your business and its employees. The benefits of your cover are dependent on your specific agreement, but can include:
- Total disability benefits
- Partial disability benefits
- Elective surgery benefits
- Recurrent disability benefits
- Death benefits
- Children’s benefits
Do you need Business Expense cover for your Australian business?
Depending on your business and its operations you can get differing levels of Business Expense cover. If you’re not sure how much cover you need for your business, speak with a Guardian Group financial adviser. Our team of qualified professionals can tailor insurance plans to fit you and your business’s needs.
So, if you’re self-employed or small business owner in Australia, give us a call. Our Business Expense cover plans can help you plan for the unexpected.