Business Expense Insurance

Posted by James Cavanough on 09-Mar-2016 09:00:00
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Lantern_Advisory_business_expense_insuranceWhat is business expense insurance?

Business expense insurance can help to keep your business running if you are unable to work due to temporary illness or injury. This may be particularly appropriate for a sole trader.
 
This type of insurance will usually cover up to 100 per cent of your eligible business expenses. For example:
 
  • Rent / lease payments
  • Interest costs
  • Acccountant’s fees
  • Telephone
  • Electricity
However, not all expenses are covered so you should check the policy wording before taking out a policy.
 
If you run a larger business, you may need to consider life, trauma, TPD or income protection insurance to cover key employees or your business partners in case they die or become disabled and are unable to work (click here to read a previous Lantern Advisory blog for more information on these types of insurance). This type of insurance protects your business in the event of the loss of a person who makes a significant contribution towards the profitability or stability of the business.
 
As an example, ‘key person’ insurance may provide the business with a lump sum that could be used to either hire a temporary replacement, cover costs of training a new staff member or just compensate the business for any reduction in profit.
 
The premiums may be deductible as a business expense depending on the insurance purpose and the proceeds may also be considered taxable income.
 

Want more information on how your can protect your assets with the right type of insurance to suit you, your family and your business?

Instantly download the FREE Lantern Advisory Ebook "Strategic Insurance to Protect Your Wealth" by clicking the image below. We provide you with information on best practices and pitalls to avoid as not all insurance policies are created equally.

You are also welcome to contact Ian Walker or James Cavanough from Lantern Advisory on 07 3002 2690 for a free and confidential discussion regarding your personal situation.

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