Today: Saturday, 15 December 2018 21:04

financial security through sustainable planning

Business continuity

southern-coast

Being the boss might give you greater freedom and earning potential. It also means more responsibilities and the need to plan for all eventualities.

Chances are you insure your premises, vehicles, equipment and stock against fire, flood and theft, but what about your most valuable asset - You?

Life is full of risks, business being especially so. Succeeding in any enterprise is challenging enough without worrying about the unexpected consequences of illness, injury or death. If you or a key person in your business were unable to work, how long could your business survive on cash reserves and goodwill? Business Continuity works for your business when you can't, providing financial protection for you and your business.

A real life story:

Roofers Limited is a business based in Hamilton. Tony does all the roofing installation, Peter does the accounting and administration, and John does the sales and account management to bring in the new clients.

Due to the dangerous work Tony does, the business puts in place Business Continuity Protection. However, an unfortunate incident (Tony falls from a ladder) causes Tony to become paraplegic, and can no longer work as a roofer. Peter and John cannot do what Tony does and need to find a skilled replacement.

Fortunately the sum insured is enough to cover the revenue losses of $180,000 for six months. The Business Continuity Protection shows the business to be in a strong financial position and they are able to fund a qualified replacement for Tony.

What would have happened without Business Continuity cover?

  • Due to a shortage of skilled labour, it would have been very difficult to replace Tony without the financial means to attract the right person.
  • The company would have to advise clients that they could no longer provide their service.
  • Peter and John would be forced to wind up the business and find work elsewhere.

Business Continuity is a type of insurance specifically designed to protect an established business. It provides a monthly cash flow into the business, should you or your key employees suffer an illness or accident which prevents you or them from working.

Commonly asked questions

QuestionAnswer
How much cover can you get? You can insure up to 80% of the business’ gross profit and if you’re covered up to $60,000 per annum. You do not need to provide financials
How long do you need to be in business? Business Continuity is designed to meet the needs of business owners who have been trading for at least three year
What are the cover periods? You can choose for your cover to pay out for 6, 12 or 24 months. The shorter the period the lower the premiums
What about ACC? Business Continuity pays approved claims in advance without the need to reduce the benefit amount if you receive ACC payments
Expert Help Business Continuity insurance also provides for a business mentor who can offer a fresh perspective and guidance at a challenging time, enabling you to focus on your recovery.

If your business needs to continue after the disablement of a key person, you need to contact us about Business Continuity and understand how it can work for your business.