Should you consider business expenses insurance?

— 5 min read

There are many different insurances that a self employed doctor should consider – medical indemnity insurance, public liability insurance, contents insurance and business interruption insurance. One insurance that is often overlooked is business expenses insurance.

Business expenses insurance is similar to income protection insurance and can provide an additional level of protection for business owners. The cover, which is also known as business overhead expense insurance, pays a monthly benefit to cover costs incurred by the business if the owner suffers an illness or injury and is unable to work. The benefit is generally payable for up to 12 months.

Business expenses insurance covers a wide range of costs your business must pay out on a regular basis. It covers explicit expenses rather than expected profits. You are able to insure up to 100% of eligible business costs which includes:

  • Office rent or property rates
  • Regular business mortgage repayments or business loan instalments
  • Equipment leasing costs
  • Salaries for employed staff who don’t directly produce income for the business such as receptionists or practice managers
  • Business related insurance premiums such as indemnity insurance
  • Net costs associated with employing a locum
  • Membership fees, publications and subscriptions to professional bodies

While many business owners would already have income protection, the aim of income protection is to support your family and pay for your ongoing personal expenses such as putting food on the table. Business expenses insurance on the other hand, is a safeguard to ensure that if you are off work for a period of time, you don’t need to use your savings or borrow additional funds to keep the doors of your business open.

If you would like to learn more about business expenses insurance or discuss your personal situation, book a no-obligation initial consultation with one of our DPM Insurance Consultants. They will compare the market, find the best fit for your situation and ensure your cover compliments the other insurances in your protection portfolio.

* The information contained in this site is general and is not intended to serve as advice. DPM Financial Services Group recommends you obtain advice concerning specific matters before making a decision.

 

Authors

Tom Rogers

B. Comm (FinPlan)

Consultant
Melbourne

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Tom joined DPM in 2016, bringing with him more than 6 years industry experience. He establishes close relationships with his clients and provides holistic insurance advice to ensure both themselves and their families have financial peace of mind.