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Business Oveheads Cover

Business Overheads Cover is for self-employed business owners whereby in the event that the insured person is unable to work due to sickness or accident, your fixed business expenses are paid in the form of the insured amount.  This will pay the policy owner for fixed business expenses of a non-capital (income producing) nature.

An example of some of the expenses which can be insured for is;

  • Rent
  • Leases
  • Recruitment
  • Debt repayment
  • Interest on loans
  • Office costs
  • Taxation
  • ACC levies
  • Salary costs
  • Staff bonuses
  • Accounting fees
  • PR costs
  • Marketing expenses

Business Expenses

You can insure for to a maximum benefit period of 2 years so if you could not return to work, your expenses would continue to be paid until you can find a new owner, partner or someone to come in and keep your business going.  This cover is not designed to grow your business, it is to protect your business from creditors through your contractual obligations, and keep your business operational so in the event, you had to sell your business, you would not have to sell at a fire sale price.

Business Overheads Cover

This cover should be part of your total business insurance package and to include this as part of your risk planning is wise. You want to make sure that your business can stay in good shape while you focus on making a full recovery or in a worst case scenario keeping it operational until sold.

  • You can sell the business while it still holds its value
  • You can implement a succession plan without having to worry about immediate expenses
  • You can pay your business debts – e.g. term loan, overdraft, provisional tax and shareholder current account
  • You are no worse off financially if you were unable to return to work