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Running a small business can be risky. Your death, disablement, sickness or injury could seriously risk the ongoing viability of your business. It is important to have plans in place for your family or partner, as well as your business. It is wise to speak to an expert who can structure the most appropriate insurance package to cater for the needs of your business. Whilst we can assist you with putting in place the insurance associated with your business needs, all aspects of your business protection plan should be implemented in close consultation with your solicitor and taxation adviser. There are four basic business protection needs to consider.
Business Insurance - Business insurance insures your buildings, machinery, shops and materials through standard asset protection policies.
Business Expenses Protection - Business Expenses Insurance ensures that the portion of your business expenses for which you are responsible will be able to be met should you be temporarily unable to work due to disability. Business Expenses Insurance generally reimburses you for certain regular business expenses such as rent, utilities, lease costs and depreciation. It is important to note that not all expenses are covered. This can help to cover your fixed business costs and keep your business afloat while you are recuperating. Generally, this type of insurance can cover up to 100% of eligible expenses up to the chosen benefit amount.
Asset Protection - Asset Protection involves protecting your business' asset base in the event of a key person's death, disablement or critical illness.
Ownership Protection - Ownership protection protects the business owners to ensure the continuous smooth running or ownership transfer of your business. Business continuation plans, including buy/sell agreements, can be vital aids in these situations. They essentially help the business owners to put in place a plan of action that can be implemented should one of them pass away, or be unable to continue participating in the business due to disability.
Constructing an Appropriate Protection Package
There are many different aspects to insurance and it is best to tailor a package that suits your needs as well as your budget. We have outlined below your specific needs and the way in which insurance may be used to address these needs -
Keeping your Business Running Smoothly - You are concerned about keeping your business operating should you become disabled, ill, or if you were to pass away. Whilst personal Income Protection and other insurances may be able to assist you, they should not be relied upon completely to meet the added financial pressure in both your personal and business matters. Business Expenses Insurance can help to meet your regular and ongoing business overhead costs.
Furthermore, Key Person Insurance can be implemented to minimise the impact the loss of a prominent staff member can have on your business. Lastly, tools such as buy-sell agreements funded by insurance can be a cost effective method to ensure the continuation of your business with minimal disruption, in the event of your or your business partner's death or disablement.
Tax Deductibility of Insurance Premiums - The premiums payable on Business Expense policies are generally tax deductible.
If you would like to discuss this service further please contact us or call your local Ellerfield office
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