Business continuity

As a business owner, you may be concerned about your business being able to continue to pay its fixed expenses if you or one of the other business owners becomes sick or injured.

Business Overheads Assured cover pays a monthly benefit for the day to day costs of running a business for up to 12 months if the insured person is disabled because of sickness or injury and is unable to work in the business at their full capacity. It could mean the difference between the business surviving or collapsing.

A Business Overheads Assured policy can help you to pay certain business expenses, such as:¹

• accountants' and auditors' fees
• advertising costs
• cleaning, electricity, gas, heating, laundry, telephone and water
• leasing costs of equipment and vehicles
• mortgage interest payments
• property rates and taxes
• rent
• salaries of non income producing employees
• subscriptions to professional bodies and publications
• net costs of employing a locum after the insured person becomes totally disabled.

Case study²

David runs a successful business as an architect. Unfortunately, last year David had a serious car accident and he broke his right collar bone and arm, rendering him unable to work. His duties within the business were the hands on production of drawings and documents for construction plans, physical site inspections and driving to councils, sites and clients.

David's business has a high turnover of revenue, and his outgoings are also high. Following David's injury, the income his business received reduced dramatically and his company started running at a loss. Fortunately his business was able to survive, mainly due to David and his team's dedication and because David was able to claim on his Business Overheads Assured Policy.

Outcome: The proceeds from David's claim helped him to pay for a locum architect to keep things running whilst he recovered. His clients continued to be serviced through his company, maintaining his professional status.