Business expense insurance is similar to income protection insurance and it is particularly useful for a small business where the income is principally gained by the insured principal. It is particularly relevant for a Dentist or Pharmacist or other small business owner who is necessary in obtaining the business revenue. (That is, other administration staff and assistants may be necessary for the business, but they do not earn any income for the business without the principal being present).
Typically, a small business owner would have income protection insurance that would pay them up to 75% of their salary from the business if he was sick or injured and could not work.
He also needs business expenses insurance. If the small business owner were sick or injured and unable to work, the income of the business would dry up and even stop because it relies on their knowledge and skill. Business expenses insurance would pay for the fixed overhead expenses of the business such as rent or mortgage repayments, property levies, rates and taxes, equipment and vehicle lease costs, electricity, gas and water costs, cleaning and laundry costs, depreciation costs, salaries of employees not generating business income, accounting fees, fees of memberships and professional associations, business insurance premiums and the net cost of a locum.
So when the business owner recovers and returns to his small business, he still has a business to return to.
Business expenses insurance would pay up to your monthly insured benefit for up to one year.
If you would like more information, please Contact Us.