How insurances can save you and your business

When operating a business many business owners consider everything that could improve their business, but often neglect creating a solid foundation, a safety-net, to catch the business and themselves in case something goes wrong.

As recently covered in the Sydney Morning Herald (19/02/2010 by Max Newnham), many business owners just take up insurance cover that absolutely necessary, like public liability and workers compensation but forget about other options that could help to secure their business and personal income.

There are a range of options available to all business owners that are worth considering:

Income Protection Insurance – Pays you up to 75% of the regular monthly salary or business income in case you can’t continue your work and generate income. As this insurance doesn’t cover a 100%, taking up a business overhead insurance should be considered to extend the level of cover. Something that is worth considering when working in a physically demanding occupation.

Business Overhead Protection – Covers the overheads of a business in case the business can’t operate due illness or injury of the business owner. Business Overhead Protection can cover things such as rent, vehicle leases, property rates and even salaries.

Life Insurance – Many don’t or don’t want to think about what happens in case of their own death and what it could mean financially to their families. Apart from business debt many business owner also accumulate personal debt to support and maintain their business and a Life Insurance policy can protect their families from having to carry the burden of these financial liabilities on top of the emotional stress of losing a wife, husband, father etc.

There is a lot that can be done to put in place different levels of security for businesses, business owners and their dependents. The right protection can make all the difference between being able to continue operations and not encounter financial hardship after a major disruption to the business.

 Like everything in life this much protection naturally comes at a price; however, considering the implications of not having the right cover, the decision to take up insurances shouldn’t be solely based upon short-term financial decisions. Talk to your insurance company or broker about what type and level of insurance is right for your circumstances.