Understanding Business Expense Insurance Cover for Private Medical Practice Owners
Running your own medical practice can be a daunting undertaking. Amongst everything else, the biggest challenge is to make sure that your business is protected against any potential threats and risks. And who would understand it better than you as a medical professional? You know so well that no matter how health-conscious we are and how hard we try to maintain a healthy lifestyle, life in general and your health in particular can still be quite unpredictable.
Without warning, life can take a sudden turn and unexpectedly an individual could be faced with an illness that prevents him/her from working and performing his/her regular duty. The illness that could suddenly appear out of nowhere may require a range of medical treatments, care and even a management plan. All of this would stop a business owner focusing on keeping the business ticking over.
Consequently, if you have your own rooms you probably already took out the insurance cover against theft and fire, WorkCover for your employees and general public liability cover. However, have you ever thought about what might happen with your business if you get sick or injured and could not work for several months or longer?
In contrast to large businesses, your practice relies on you as the business owner to contribute and pay for business overheads. But then again, what would happen if you were so ill or injured you could no longer work?
This is where Business Expense Cover, also known as business overhead insurance, can help safeguard small businesses or medical practices.
What is Business Expenses Insurance Cover?
Business Expenses Cover is offered to self-employed persons including business owners, partners and shareholders, who work full-time in their business. If a business owner cannot work due to an accident or sickness, business overhead insurance pays a monthly benefit, generally for a maximum of 12 months to help cover the cost of fixed business expenses, for instance office rent and utility bills.
In a comparison to an Income Protection policy, Business Expenses Cover works almost in the same way except that this type of insurance cover focuses on your business. The person(s) insured are business owners who are responsible for covering the business overheads.
What expenses are insured under Business Expenses Cover?
As noted above the Business Expenses insurance policy can cover eligible business expenses. This is a great way to protect a business should a person be unable to work due to an illness or injury as it covers a whole range of expenses a business must pay regularly.
It is important to note that this type of insurance cover does not insure estimated profits. It generally covers the expenses a medical practice spends frequently and can include:
- Office rent and employees salaries;
- Equipment maintenance costs;
- Electricity, gas, telephone and internet bills;
- Loan repayments;
- Insurance premiums;
- The cost of a locum;
- Leases on cars, and other equipment;
- Accounting and auditing fees;
- General maintenance and repair;
- Membership fees, publications and subscriptions to professional bodies; and
- Advertising, postage, printing and stationery.
This cover takes care of a business expenses so that a business owner who is injured or ill can focus on their recovery and not have to worry about business overheads and bills.
Is Business Expenses Insurance Cover tax deductible?
The premium payments on Business Expenses Cover are tax deductible which makes this type of insurance cover even more affordable. As it is the case with other tax deductions, it is important that a receipt of business expenses cover premium payment is kept so that the money can be claimed back when tax return is being submitted.
It is important to note that the benefits received from business expenses insurance are also assessable for tax.
Whilst we all hope that we may never encounter reasons to need Business Expense Insurance Cover, life is unpredictable, and it is important to make sure that your business is protected against any potential threats and risks. Liaise with your insurance adviser early to make sure your business is covered appropriately.
Disclaimer: * The information contained in this site is general and is not intended to serve as advice as your personal circumstances have not been considered. DPM Financial Services Group recommends you obtain personal advice concerning specific matters before making a decision.