Business Expenses insurance
Business expenses insurance is similar to income protection insurance , but it’s designed specifically for business owners.
As the name suggests, business expenses pays a monthly benefit – generally for a maximum of 12 months – to cover business costs if you (as a business owner) suffer an illness or injury and are unable to work.
You can generally choose a waiting period between 14 and 90 days, after which the insurance benefit becomes payable. A shorter waiting period usually means a higher premium.
Business expenses insurance is different from business interruption insurance, which is not related to your health or ability to work. Instead, business interruption insurance pays you a monthly amount to cover business expenses if an external trigger event occurs such as fire or water damage.
How much is enough?
The right amount of business expenses insurance depends on a range of factors. For example, to what extent would the business owner’s absence affect their ability to meet expenses? And what are their specific ongoing expenses?
Some things to consider include:
- Staff salaries (non income-producing roles)
- Rent on your place of business
- Phone, gas and electricity
- Leasing expenses for equipment and vehicles
- Repairs and maintenance.
Business expenses premiums are usually tax deductible, and can be packaged with income protection insurance to make sure both your personal income and work expenses are covered.
What does it cost?
The cost of business expenses insurance varies based on a range of factors including your age, gender, and the amount of cover you require. As an example, for the equivalent of $3.52 a day, a 30-year-old female hairdresser could buy a policy that pays a benefit of $4,615 a month*.
* Based on an Asteron Life Complete policy, non-smokers, stepped premiums paid annually, Queensland residents, 30-day waiting period.
Business expenses insurance from Suncorp
A Suncorp Financial Adviser can work with you to determine an appropriate level of cover for your needs. And because we undertake an assessment of your current situation and medical history, the insurance you’ll receive is likely to be more relevant and cost-effective.
Business expenses insurance can include special benefits such as:
- a three tier disability definition, which allows you to work for up to 10 hours a week without that income affecting your monthly benefit
- a specific injury benefit, which guarantees payment for a specified amount of time if you suffer from a list of injuries
- a crisis benefit, which guarantees payment if you suffer from a list of serious medical conditions
- locum cover, which can reimburse the cost of employing a locum to maintain the business in your absence.
To discuss your own insurance needs, please make a no-obligation appointment with a Suncorp Financial Adviser.
To find out more about business expenses insurance from the Suncorp Group, please, read the Asteron Life Complete Product Disclosure Statement.
This information is general advice and doesn't take into account your objectives, financial situation or needs. You should consider the Product Disclosure Statement and consider obtaining financial advice before making any decision about this product. This product is jointly issued by Suncorp Life & Superannuation Limited ABN 87 073 979 530 AFSL 229880 and Suncorp Portfolio Services Limited ABN 61 063 427 958 AFSL 237905 RSE L0002059. This product is not a bank deposit or other bank liability. Financial product advice is provided by representatives of Suncorp Financial Services Pty Limited ABN 50 010 844 621 AFSL 229885. Products and services are provided by different entities in the Suncorp Group and each entity is not responsible for, does not guarantee and is not liable in any respect for products or services of other Suncorp entities.
