Business Expenses Insurance
Business expenses insurance is used to cover fixed business expenses if you are unable to work due to sickness or injury. It can keep the business running while you take time out to recover.
Many people think that workers' compensation, business interruption insurance, or even your income protection policy will cover these expenses, but in actual fact they won't.
Your personal income protection cover is designed to cover up to 75% of your own taxable income from your business. But if you have fixed business expenses and you don’t also cover these, you've only got half the protection you need.
Because it makes sense to have both covers in combination, Zurich’s Business expenses cover is available as an option with the Zurich Income Protector policy.
A brief outline of the benefits provided under Zurich's Business Expenses option (via the Zurich Income Protector policy) is set out below. Full details, including any benefit limitations and exclusions, can be found in the Zurich Wealth Protection PDS (pdf 2.3Mb).
Business expenses benefitA monthly benefit is payable after the waiting period if you are totally or partially disabled for the duration of the waiting period and remain totally or partially disabled after the waiting period ends.
The benefit payable is the lesser of the insured monthly benefit and the actual business expenses incurred in that month, and benefits can continue to be paid for up to 12 months.
Waiver of premiumWhen a benefit is payable, all premiums will be waived or refunded to reduce expenses at a difficult time. Premiums paid in the waiting period are also refunded if the claim form is lodged promptly.
Inflation protectionCover can be increased each year to allow for inflation.
Provision for fluctuating expensesA claim can extend beyond 12 months if the total amount paid is less than 12 times the business expenses monthly benefit to allow for fluctuating expenses.
How to apply
Applying for Business expenses cover is as easy, but more importantly, because the majority of the expenses covered are your fixed commitments, it makes claiming a breeze, because:
- Your fixed costs are generally easier to prove because it's easier to access documentary proof (lease, rent, loan repayments, payroll, etc)
- For fixed expenses you only need to provide this evidence once at the very beginning of a claim
- We recognise that businesses will also have variable expenses such as electricity, telephone, gas usage etc. All we require at claims time is a copy of the invoices for those expenses as they are incurred.