If you are a key contributor to your business and you fall ill, how will the fixed commitments of your business expenses like rent, loan repayments or payroll be paid while you are unable to operate your business?
When a small business owner is unable to keep operations ticking over due to a major health issue, the company they have worked so hard to build often falls to ruin in a very short time.
Without the business owner or manager around to keep up momentum, revenue will decrease and in some cases additional staff may even be required to come on board to take up the workload, further increasing costs.
Fixed Overhead Protection works like income protection, a benefit is paid monthly for 12 months to cover fixed operating expenses which your business spends on a daily basis, such as rent, administrative salaries, insurance and accounting fees.
If you are a sole trader, small business or partnership that relies heavily on a key person for cash flow and revenue, consider having protection to guarantee the survival of your business.
Other types of insurance available might cover your personal income or living expenses during illness, or business income lost due to a major interruption of operations due to a fire – but neither will cover the cost of fixed expenses required to maintain business operations.