Introduction
Business Expenses insurance is designed specifically for business owners or sole traders and aims to minimise the financial impact of their sickness or injury by paying a monthly benefit to cover eligible business expenses during a prolonged absence from work. This will allow a business owner to focus on recovery.
How does business expense insurance work?
Business Expenses policies will usually pay a benefit up to 100% of your gross (eligible) expenses for a set term of 12 months after a waiting period has expired.
What are the eligibility requirements for business expense insurance?
To be eligible for business expense insurance, you need to be a sole trader, in a partnership or a working director and be responsible for paying the business’s expenses. Eligible expenses may include costs for premises, services/utilities, equipment and leasing costs, salaries and associated costs for non–income generating employees, and accounting fees.
How are business expense insurance policies owned?
Your business expense insurance policy will be owned by the business entity with the business owner as the insured person. Generally premiums for Business Expenses insurance are fully tax deductible. The proceeds are taxable but the business can claim tax deductions for expenses paid.
