Business Expenses:

A Business Expenses insurance policy is occasionally known as Business Overheads Expenses, or Business Continuation Insurance. This type of policy can be likened to an Income Protection policy, due to having benefit payable and waiting periods, and a monthly benefit amount.

Usually, you can select a waiting period from 7 days up to 90 days, but the benefit payable period is fixed at 12 months right across the board of all insurers.

Once again the benefit is payable if you are unable to work due to sickness or injury, but the benefit amount may differ from month to month. This is because with a Business Expenses policy you insure against expenses such as Rent, Electricity, Gas, Water, Heating, Telephone, Insurance Premiums, Vehicle and Equipment Leases, Property Rates and Taxes, Dues to Professional Organisations, Depreciation, Accountants Fees, Salaries and Superannuation of employees who DO NOT generate income.

You would total your years overall expenses, dived by 12, to get your monthly benefit amount, but the benefit you receive will cover those expenses actually incurred during that month. As an example, if you had a monthly benefit of $5,000 , and only had expenses of $4,150 for that particular month, the benefit you would received would be $4,150. Another example would be, once again you had a benefit amount of $5,000 , but incurred $6,220 of expenses for that particular month, the benefit that you would receive would be $5,000.

As you can see by the above examples, the benefit amount is your ‘ceiling amount’, and the benefit that you actually receive can vary month to month.

These type of policies are usually marketed to small business owners, where one employee (possibly yourself) generates the majority of the business’s income, and in the event of that employee being unable to work due to sickness or injury, the business will survive until the employee returns (remember though, this policy only has a 12 month benefit payable period).

All information included on this site is Life Insurance Advisory Service of Australia’s interpretation only, and for exact definitions, the individual insurance companies customer information brochure should be referred to at all times.


Integration of Insurance into the Excelsior Program
As an additional service, Financial Advisers Australia can integrate selected insurance policies into your overall Program.

In this way, provision is being made during the year for these payments and you can be rest assured that your security is in good hands.

Contact us for more information through a free two hour no obligation appointment.
Prepared by John Hehir Financial Advisers Australia (FAA).