Business owners need to consider a variety of insurance covers to ensure that they and their business are properly protected.
Whilst our website has a strong focus on public liability insurance, we are well aware of the other forms of cover important to business owners.
One of the most important forms of cover is income protection, and in this guide we will take a look at this type of insurance.
What is Income Protection?
Most people in business will be familiar with the basic principle of income protection. Essentially it will replace a percentage of your income whilst you cannot earn for yourself.
If you are unable to work due to injury or illness, an income protection policy will replace up to 75% (or 80% in some cases) of your income for a period of time until you are able to return.
Why is it Important?
Employees are lucky enough to receive benefits such as sick leave and worker’s compensation, but as a business owner you may be on your own if you cannot work.
Instead of having to dig into your savings – or worse, credit cards – to pay your living expenses whilst you cannot work, an income protection policy can look after bills such as the mortgage and groceries etc.
Income Protection Options
There are a number of options when it comes to income protection for business owners.
The two main options relate to the waiting period and the benefit period. The waiting period is the length of time you must be unable to work for, and the benefit period is the maximum amount of time you will be paid for.
When considering the options on a new income protection policy it may be best to speak with a financial adviser who understands the needs of business owners.
How Much Does it Cost?
The cost of income protection can vary greatly depending on a number of different factors including your age, health, business or occupation type and the amount of cover you require.
A very basic policy for a young business owner could be had for as little as $50 per month, but a larger and more comprehensive policy could stretch out to thousands of dollars per year.
Here at Public Liability Insurance Australia we have partnered with a number of financial advisers who specialise in income protection for business owners.
If you are also requesting a quote for public liability, just tick the extra box for income protection and answer the additional questions.
If you do not require liability and would just like a quote on income protection, please contact our office and we will be happy to assist you.