Self-employed? Don't leave your business at risk
What would you do if you became sick or injured and were unable to keep your business running? It’s not something that is often thought about, but it is important to take a moment to consider it.
Did you know that 1 in 2 Australians will be diagnosed with cancer before the age of 51 ? And that Cardiovascular Disease kills 1 Australian every 12 minutes ? These alarming statistics may make you think twice about covering yourself, and your business, for the unexpected.
If you were unable to work for 12 months, would your business survive? A serious illness is debilitating and may require extended leave to recover. You may end up losing your livelihood that you’ve worked so hard to build. How would you begin to rebuild your business once you recovered? The above are questions every business owner should consider.
Are you aware of the total cost of all your business expenses every month? How would you pay for these expenses if something were to happen to you?
Many life insurance companies offer business insurance solutions which are designed specifically for the self-employed or business owner. This type of insurance includes business expenses insurance which covers the fixed expenses of a business or practice that still need to be paid, even if the life insured cannot work due to injury or sickness.
Business expenses that you need to consider may include, but are not limited to:
■ Accounting and auditing fees
■ Regular advertising costs, postage, printing and stationery
■ Electricity, heating, gas, water, telephone and cleaning costs
■ Security costs
■ Net costs of a locum
■ Rent, property rates and taxes
If you become disabled, and depending on the type of policy you purchase, the benefit may be paid monthly over a period of 12 months. This period can be extended if at the end of the 12 months the life insured remains totally disabled.
The type of policy you choose and the amount of cover that you need depends on you and your business needs. Some people think that their income protection insurance is enough to cover themselves and their business. The advantage of combining a business insurance policy with an income protection policy is that as well as receiving an income stream from your income protection policy, your net business expenses will also be paid. It’s a small price to pay for peace of mind.
Source: AIA Speak to your financial adviser to discuss your business insurance options.