A business owner’s priority is to keep the enterprise running smoothly. This calls for ensuring efficient operations, properly maintaining equipment and facilities, and guaranteeing the proper payment and treatment of employees.
But what happens if a business owner falls ill or gets into an accident? Having a business overheads insurance plan or package ready helps answer that question.
What You Need to Know About Business Overheads Insurance
Most corporate or industrial insurance packages cover property damage, theft, and public or product liabilities. Business overheads insurance (also referred to as business expenses insurance) on the other hand, ensures operational continuity if an owner becomes too sick or too severely injured to work.
In principle, it can cover up to 100 per cent of a company’s expenses, including rents and leases as well as operational costs such as the payment of employee wages.
Who needs business overheads insurance?
- Small businesses, particularly those incorporated with less than five partners or single-proprietorship enterprises.
- Solo professionals or consultants earning their income from services rendered.
What are the benefits of having a business overheads insurance plan in place?
- Up to 100 per cent of eligible business expenses are covered, and some insurance companies will even waive premiums for companies claiming cover.
- Business overheads insurance cover is kept relevant as inflation is always taken into account. Covers are automatically increased based on the current consumer price index (CPI.)
- Since this kind of insurance is considered a business expense, premiums are usually tax-deductible.
Related Post: What Are The Benefits Of Having Business Expense Insurance?