Running a business can have many challenges, especially in the start-up phase. So once you get yourself going, how can you protect not only your livelihood but the livelihood of those that depend on you?

When you think of business insurance your first thoughts may be protecting your physical assets or covering yourself with public liability cover. But what about protecting your key people or shareholder debt protection? When you start to consider what business income protection insurance encompasses, you realise business insurance can take many forms.

Eliminating risk with shareholder protection

Shareholder protection is used so that should a shareholder pass away prematurely or suffer a total disability, the remaining business partners have the ability to purchase the shares of the afflicted shareholder. By having this type of protection in place, the affected shareholders family can receive funds without the remaining shareholders having to find a way to fund a buyout or forcing a quick-fire sale of the business.

Generally, a Share Purchase Agreement will accompany this type of insurance. A Share Purchase Agreement ensures that any insurance benefits are legally obligated to be used for the purposes that the insurances were established for.

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Business debt protection

If your business partner suffered a serious illness which stopped them working or passed away, could your business keep going? More importantly, would you be liable for all business debt?

The ability to repay debt can make or break a business. By ensuring you have a form of business debt protection in place you will have peace of mind that you could repay debt and protect your personal assets, such as your family home, from potential creditors.

Ensuring business continuity by protecting your key people

Business continuity protection can provide you with a regular benefit to help keep your business running should you or any of your key employees be unable to work due to an accident or illness.

Why would I need business continuity protection?

  • How long could your business survive if you or a key staff member were not able to work?
  • Could you keep up your debt repayments if your income stopped?

You may hold the view that ACC would help you out in the above circumstances. However, ACC can only provide a benefit to see you through an accident – not a serious illness. By having business continuity protection in place, you can provide your business with funds to replace either yourself or a key person to keep income flowing through the business.

Start-Up Income Protection Insurance

Start-Up income protection is similar to business continuity protection except that is designed for those that have been in business for less than three years.

This type of insurance is important as any setbacks during the crucial early stages of your business could mean that you miss out on growth opportunities or stop you from being in business altogether.

If you are just starting out you can get an agreed value policy that will pay you a fixed amount in the event you can’t return to work. This is still income protection insurance however it is not as comprehensive as a traditional policy. Most insurance companies will allow you to upgrade after 24 months and you won’t have to provide financial evidence of income. If you want to compare and see what policy is best for you then click here to compare.

If you would like to learn more about protecting your business, click here to speak to an experienced adviser who understands what business insurance is all about.

 

Rachael Manson
Rachael Manson
03:27 30 May 20
Alan has been brilliant to deal with and extremely patient as we worked through the changes that we were seeking for our life cover and income protection requirements.
Celia Grigg
Celia Grigg
23:36 21 May 20
Hayley was great, from responding to my initial inquiry to finalising my policy. She provided good information and communicated with me every step of the way - efficient, thorough and friendly. She went above and beyond.
Wang Emily
Wang Emily
01:59 19 Apr 20
Hayley has been very helpful and professional with her insurance services, she is committed to work for the best interest of her clients , friendly to deal with and flexible to suit clients’ requirement. Definitely Recommended!
Toko Ngakiau
Toko Ngakiau
20:19 29 Mar 20
I am very wary of random calls about insurance, but I found Daniel from IronOak to be very transparent and a pleasure to deal with.On all occasions he was able to come out and visit us. He explained in detail what we were looking at, and offered a number of comparisons. HIGHLY RECOMMENDED
Hannah Lawrence
Hannah Lawrence
21:00 15 Mar 20
Hayley was very efficient and always delivered on her promises. She put together a good package for me. I would highly recommend Hayley.
Jay Nimbus
Jay Nimbus
08:11 15 Mar 20
Daniel was great to deal with and made seemingly complicated decisions a lot simpler than I expected. I had been stressing about it for a while, wish I had got in touch sooner. Much thanks!
Annette Page
Annette Page
22:39 01 Mar 20
Prompt, professional, pragmatic advice and service. Many thanks.
CrazySmurf Azrial
CrazySmurf Azrial
11:20 28 Feb 20
Hayley was awesome to deal with, answered all my questions and followed up with me weekly to keep me informed throughout the whole process. It can be daunting but she made the process easy. She was easy to talk to and didn't feel pressured.Thanks Hayley for organising everything and helping me through the whole process.
Paul has helped me to find the best option for my family insurance. He made everything easy.
Trixie Lawton
Trixie Lawton
15:55 25 Dec 19
I found Hayley very pleasant to speak to and was explained everything in great detail and in easy terms
Kayleigh Price
Kayleigh Price
22:12 16 Dec 19
Paul was very easy to deal with and made income protection insurance seem much clearer. He gave sound advice, was efficient, friendly and I would recommend him to anyone.
Sunil Kadri
Sunil Kadri
23:23 01 Dec 19
Paul did alot of work to find the right policy for me, was very patient as I wavered, and even helped me with the right questions to ask of my insurer on their parallel policy. Overall he proved an excellent broker whom I'd gladly recommend, and go back to myself.

 

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