If you are a small business owner, it is wise to consider Business Expenses Insurance.

What are the benefits?

By using this strategy, you could:

  • keep on top of your business expenses if you are unable to work due to illness or injury, and
  • ensure you have a saleable asset if you are unable to return to work.

How does the strategy work?

In the previous strategy, we explained how Income Protection insurance can replace up to 75% of your pre-tax income if you are unable to work due to illness or injury.

But what if you are a small business owner (eg you are self-employed, in a small partnership or operate your small business through a company)?

While Income Protection insurance should still be considered, it’s also important to protect the very thing that generates your income – your business.

By taking out Business Expenses insurance, you can cover 100% of your share of eligible business overheads, should an illness or injury prevent you from working.

This could help keep your business afloat and ensure that, in the worst case scenario, there is still a business to sell should the need arise.

Expenses that can be covered typically include, amongst other things, office rent and loan payments, equipment or vehicle leasing costs and utility bills such as electricity, heating and water.

The maximum benefit payment period is usually limited to 12 months. After this period, you can reasonably determine (with guidance from your doctor) whether you will be able to return to work.

You can also choose a waiting period before the policy will start reimbursing your business expenses – typically 14 days or a month.


If you need more information or help to implement this strategy for your wealth protection,
contact us today.
Head Office – Suite 6, 53-57 Glen Osmond Rd, EASTWOOD SA 5063 AUSTRALIA
Ph – 08 7111 0022
Email – info@fmgws.com.au

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