Business Income Protection Insurance

Could your business survive if an unexpected crisis hit? If one of your key players has to take significant time out due to a critical illness, do you have the financial buffer needed to overcome the drop in funds?

It’s not uncommon for small businesses to be brought to their knees if they face unexpected business disruption, but when difficulty strikes, having business income protection insurance is often the difference between make or break. It pays to get smart about protecting your personal finances.

In this article, we’ll cover…

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What is income protection insurance for business?

Income protection provides regular tax free income if you are unable to work for a prolonged period due to an accident or illness. You’ll usually receive monthly payments of up to 60% of your earnings.

Income protection insurance for businesses covers you against losses to your income from business disruption. If you experience unexpected illness or a crisis which leaves you unable to work, having income protection will enable you to quickly recover and carry on trading.


How does small business income protection work?

Small business income protection provides you or your employees with regular monthly payments to make up for any temporary loss of income if you’re unable to work.

Exact terms will vary from one provider to the next, but many insurers offer cover against a wide range of illnesses including the flu, musculoskeletal disorders, accidents, or stress.

You pay a fixed monthly premium for small business income protection and receive a regular monthly payout if an illness or injury leaves you out of action.

A financial advisor can help you assess how much income you would need if you were unable to work and then take you directly to a provider who offers cover for your occupation and the range of illnesses or accidents you want to be insured against.


Income cover for small business owners

For small business owners, the stakes are high – if you’re unable to work for a while, the business could take a sudden downturn or even face closure if you don’t have a large emergency fund. But you can protect your livelihood from a fluctuating personal finance cash flow.

Business income protection will have you fully covered in the event of illness or injury, insurance will provide you with a steady flow of a percentage of your regular income while you recover.

Payouts are generally between 60-75% of your income, but you can negotiate the exact terms of your cover based on your specific needs. And under current tax laws, your premiums will usually qualify as a business expense.

A financial advisor can help you navigate the details of taking out income protection such as how much cover you’ll need, how long it would pay out for, the length of your deferred period, and how to claim premiums back from your tax.


How do I get an income insurance quote?

With a quick online search you can find and compare business income protection quotes from multiple providers. By visiting providers websites, you can dig deeper into the specific terms and conditions to find out which insurer could best cover your income protection needs.

However, this process can be tedious and time-consuming, as many major banks don’t offer business insurance or only offer it through a financial advisor.

That’s why many business owners prefer to work with an expert financial advisor who can ensure you’re making an informed, well-researched decision while speeding up the decision making process.

If you claim business insurance properly through your business with the help of a financial advisor, you can take the cost back out of your taxes as an expense.


Speak to an expert advisor today

Knowing that you and your family are well protected in case of an emergency leading to a drop in personal income will give you the peace of mind to fully focus on running your business.

But many banks and insurers only offer business insurance through a financial advisor, so to find your best income business insurance deal, speak to an advisor who has contacts throughout the entire market and can take you directly to your best offer.

An expert will also ensure the cover you’re taking out is exactly what you and your business needs while maximising your tax advantages.

Online Money Advisor works with the best insurance experts who have contacts throughout the insurance industry.

Make an enquiry with us or call 0808 189 0463 to be connected – free of charge – to a business income insurance advisor for a no-obligation chat.

We'll match you with your perfect financial advisor

Save time and money with an expert who specialises in cases like yours

We'll match you with your perfect financial advisor

Save time & money with an expert who specialises in cases like yours.

We’ll match you with your perfect financial advisor – for free.