The Importance of Income Protection Insurance for Business Owners and Entrepreneurs

Running a business is hard enough when you’re fit and healthy, let alone when life happens and you’re left battling a serious injury or illness. At Morgan Insurance Brokers, we understand how important and complex your investments are. For business owners and entrepreneurs, personal and business finances are blurred into one. That is why protecting your finances is more important than ever. Suddenly, you’re not just facing personal financial regression, but you’re putting your business at risk, too. 

Income Protection Insurance is your backup plan, so you can protect your business, even whilst you’re in recovery. Anyone who runs a business rarely has time to stop. But when there’s no choice, you need to be sure that your business can float without you. Morgan Insurance Brokers can help you get started. Reach out to our team of professionals today for expert advice. 

Why do I need Income Protection Insurance as a Business Owner or Entrepreneur?

Income protection insurance is particularly vital for business owners and entrepreneurs because of the complexities involved in running a business. There are multiple aspects to consider, like business expenses, personal finances and tax responsibilities. You don’t want your business to be impacted by your circumstances, so how do you protect your assets with income protection insurance? 

• Business Expenses: Some income protection policies offer additional support for business owners, which is known as Business Expenses Insurance. This allows your coverage to cover your business’s costs whilst you’re unable to work. This can include your business’s rent/mortgage, leasing costs for equipment and employee salaries. Don’t let your business suffer.
• Personal Support: As income protection insurance typically covers 70-90% of your standard income, you can keep up with your essential costs (i.e rent, bills, groceries) without having to blur the lines between your business’s finances. We know just how combined personal and business finances can become, but when you’re at your lowest, you need the reliability and clarity that your insurance can give you. 
• Tax: Opting for Income Protection Insurance is tax-deductible for business owners, as it is considered a cost related to earning your income. So, protecting your livelihood can be beneficial at the end of the financial year when you’re considering your business costs. 
• Priceless Peace of Mind: To ensure a speedy recovery that allows you to get back on your feet in no time, income protection insurance gives you the peace of mind that you need. In the long term, if you’re able to completely relax with the comfort that your business’s needs are taken care of, you can focus on recovery and treatment.

Getting Started: Income Protection Insurance Breakdown

Finding the right income protection insurance policy for you starts by considering your circumstances (age, health and wealth) to determine how much you’ll realistically need your policy to cover. For instance, if you have a mortgage, car payments and regular bills to consider, you’ll want to factor this into your policy. With factors such as benefit periods, it’s important to consider the likelihood of you falling injured or ill, so you can estimate how long it will take you to get back on your feet and, therefore, require payments to be made over a longer period. Typical cover can range from two years, five years or up to the age of 65. For waiting periods, which can vary from 30,60 or 90 days, you should understand how long you’ll be able to support yourself when your income stops, before your payments kick in.

Income protection insurance is generally more expensive for individuals at a higher risk of needing to claim. For example, older individuals or those in high-risk occupations (construction). So, don’t wait too long to explore your options, as it may make all the difference when you’re looking at the cost of protecting your future.

To protect your business’s continuity, you can make calculated decisions regarding your policy that ensure everything runs smoothly while you recover. There’s a lot to factor in. If you’re not sure where to start, contact our team at Morgan Insurance Brokers today for more tailored advice on your circumstances. 

Business as Usual with Morgan Insurance Brokers

Start today, for tomorrow. At Morgan Insurance Brokers, we’re dedicated to providing you with expert advice so you can secure the best policy for you and your business. As a highly reputable brokerage, you can trust us to point you in the right direction. 

Contact us today to find out more.