01 Jun Why Tradies Need Business Expense Insurance
What if you got involved in an accident or suddenly fell ill and couldn’t work for a period? Who would pay for all your business expenses while you’re recovering?
Well, you might have income protection insurance to cover all your expenses such as the mortgage and your groceries, but what about your business expenses?
It doesn’t matter if you’re operating your business alone or have a huge team working for you, if for some reason you are unable to work, business bills will still be there at the end of the day.
Having a business expense insurance policy is great because it covers these costs so that you can keep your business running, while you’re recuperating at home giving you one less thing to worry about.
Why Do Business Owners Need It?
As a business owner, you’ll be faced with some fixed costs that your business acquires every month.
These fixed costs can be from the interest on the loan you took out to start your business, the lease on your vehicle, machinery, business insurance premiums and possibly rent if you’re working from your office or workshop.
These costs will still pile up even if you’re at home recovering from an injury or illness. If you have tucked a few dollars away, you might be able to pay for these costs for a few weeks but what if your recovery period goes for a few months or maybe even a year?
It’s better to have peace of mind to know that you’ll still have your business up and running when you get back to work even if you have taken a few weeks or months to recover
What Does It Cover?
A business expense policy will cover many of the fixed costs your business incurs.
They usually include:
- Office rent/interest expenses on a property loan
- Vehicle or equipment leases
- Business insurance premiums
- Utility and other bills
- Salaries for non-revenue generating staff
- Cost of a replacement while you recover
The cost may vary depending on how big your business is but regardless it can add up quickly over time.
If you have the type of business that relies heavily on your input to produce profits, it will indeed require a business expense insurance policy unless you have a significant amount of money in the bank.
The Axiom Risk team is well qualified, having worked in banking/financial planning industry for more than 25 years collectively.
Contact us today on (08) 7231 1412 for a confidential and personalised discussion about your individual circumstances and requirements or visit our Risk Insurance Adelaide Website.