Business Continuity Insurance

 

Often businesses are reliant on the efforts of one person. This is why they can be the most vulnerable. Unless consideration has been given to Business Continuity Insurance an illness or accident to that person can mean the demise of the business or even bankruptcy. The flow on affects to lifestyle, family and the future can be ruinous.

Preservation of the business in such circumstances can be assured with adequate protection to continue to pay the overheads or employ a locum to carry on the business.

What do you need to consider?

To establish the level of cover required one needs to know what the average monthly direct costs are. That is, those costs that would continue even though no income was being produced. E.g. rent, bank loans, utilities, insurance, rates and other fixed costs. Alternatively the level of salary required to be paid to a Locum of sufficient ability and experience that could continue to operate the enterprise and generate sufficient income to cover those costs.

The age, sex and health of the insured person obviously affects the premium cost but this can be mitigated with an appropriate wait or stand down period.

Launching any type of business involves an immense effort and a certain chutzpa. Preserving that effort and the journey to date requires Business Continuity Insurance.

 

Like to know more, contact one of our Commercial Brokers and they can take you through the process.

 

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