If you are a sole trader, a business owner employing multiple staff, or part of a medium to large organisation, insuring the people in your business is essential. But where to start?
If you are a sole trader you should consider Income Protection & Business Expenses Protection. Income Protection will cover your personal declared income and Business Expense Protection will protect the remaining income which is paid to business related expenses (Eg; Staff, Car payments, Office rent, Tools, etc).
But I only earn a small amount ‘On Paper’. Insurance companies look at the personal declared income and add back some forms of depreciation and (non-working) spouse salaries, which generally help increase the real gross income to insure adequately. The remaining income can be covered through Business Expenses Protection (Car payments, staff expenses, phone, office rent, etc). Please speak to our experienced advisers to work out how much you can safely cover.
If you have staff you cannot afford to lose – KEYPERSON INSURANCE protects the business against the loss of a valuable member of staff in the event of their death, disablement or trauma event. The basis of Keyperson insurance is that if that key staff member was to die or be unable to work in that occupation again, then the company would receive a benefit, which would generally cover:
> Loss of profit that employee would normally generate (for x amount of years).
> If that employee has an equity stake in the business, their partner would be paid their share of the business value upon their departure (Please note that a legal agreement needs to be put in place between parties for this to occur).
> Costs associated with finding a suitable replacement, which could take 6-12 months.
The types of insurance that need to be considered when looking protecting the business are:
LIFE INSURANCE
TOTAL & PERMANENT DISABILITY
TRAUMA INSURANCE
If you need help with determining how much you need, Call us on 1800 989 657
Or send an email below:
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