Running your own business can be one of the most rewarding - but challenging - things you will do in your life. Whilst it can be challenging during the best of times, imagine trying to run your business from a hospital bed. How long could your business survive without you?
Thankfully there are a number of different insurances available to help you, your family and your business in the event that you are unable to work due to injury or illness.
Business Expense Insurance
Business expense insurance will pay a monthly benefit in the event that you are unable to work due to injury or illness. The benefit can be used to cover your business expenses such as rent, equipment leasing and even staff wages. This type of insurance can help to ensure your business remains viable while you concentrate on your recovery, ensuring you still have a healthy business to return to.
Key Person Insurance
Does your business have one or more staff members upon whom your business heavily relies on? If one of these people where to find themselves unable to work due to injury or illness (or even death), would you be able to cover the shortfall in income, in addition to having the available capital for rehiring and retraining costs?
Key person insurance will pay a lump sum benefit in the event that one of your key staff are unable to work due to injury, illness or death. The proceeds can be used to replace lost revenue, as well as covering the cost of hiring a replacement and providing their training etc.
Business Succession Planning
If your business partner was to die tomorrow, would you have sufficient capital to purchase his or her share of the business from their estate? If not, would you be comfortable in working with whoever may inherit your partner's share of the business?
Business succession planning using insurance is one of the most effective ways of ensuring the continuity of your business. Using life insurance, a plan can be established that provides sufficient cover to enable the surviving partner (or shareholders) to purchase the shareholding of the deceased.
This type of plan is not limited to the death of the business partner. Insurance can also be put into place to cover the total and permanent disability of a business partner, or the suffering of a major trauma that may keep them out of the business.
Public Liability Insurance
Another form of insurance that many businesses should consider is public liability insurance. This form of cover differs to those listed above as it is classed as a 'general insurance' product rather than a 'life insurance' product, and therefore comes under a separate licensing regime.