Running your own business can be a major challange. So, if you're serious about making your venture work, you won't leave anything to chance.

Besides ticking off your business essentials - premises, bank, accountant, transport and tools - have you remembered to protect your most valuable asset - your ability to earn? What would you do if you were unable to work because of sickness or injury? Who would pay the bills, provide for your family and keep the business going?

Life is full of risks and pitfalls - and business especially so. Succeeding in any given venture is challenging enough, without having to worry about the unexpected consequences of illness, injury or death.

PIC will assist you in putting together your protection plan by helping you identify the risks that your business could face. Most of us will take steps to protect the business assets, such as plant and equipment. However, people themselves are often the most important asset for a business, and their loss, temporarily or permanently can have a far greater impact.

1. Business Debt

Nothing can cripple, or even sink, a business faster than the inability to pay loan instalments, tax bills, rent, salaries and suppliers. How would your business cope if key owners or employees were permanently out of the picture?

Consider your financial obligations to:

• Financiers;
• IRD;
• Landlord(s);
• Staff;
• Creditors;
• Suppliers;
• Personal Guarantees.

2. Business Continuity

Productivity can be seriously disrupted when a key person becomes seriously ill, has an accident or dies.

You need to think about:

• Buying in employees;
• Replacing profit;
• Holding market share;
• Contractual commitments;
• Customer confidence;
• Supplier confidence.

3. Business Owners

Death or disability can force change on your ownership structure, making it necessary to draw on cash reserves and assets. It is vital to formalize any shareholder/partnership cover through a buy/sell agreement to ensure capital is distributed as agreed.

How would you eliminate ownership issues?

• Use cash;
• Sell some assets;
• Get a loan from the bank;
• Pre-arrange funding.

It is essential for to keep your customers happy, pay your bills and preserve your families lifestyle. So whatever the size and nature of your business, you need to give full consideration to your insurance needs.  Where are you most vulnerable? Could you or your business survive, and prosper, in the absence of one or more key players? Would the loss of a partner leave the others with significant debt?

Life cover, as well as protecting your family's lifestyle, can be a valuable tool in safeguarding the long term prospects of your business enterprise. Similarly, critical illness and income protection cover can provide for your business, as well as personal needs.

If you are serious about success, attending to your insurance needs is an important part of business planning.