Is your business checklist complete?
Besides ticking off your business essentials – premises, bank, accountant, transport, and tools – have you remembered to protect your most valuable asset, your ability to earn? What would you do if you were unable to work because of sickness or injury? Who would pay the bills, provide for your family and keep the business trading?
Most people are aware of the need to insure against property loss or damage, but what about the threat to your most valuable human resource – you, and the people who are vital to the continuing success of your business?
The loss or temporary loss of key personnel can have a dramatic effect on any business, and can even be terminal.
People themselves are often the most important asset for a business, and their loss, temporarily or permanently can have a huge impact.
This type of protection is often overlooked. The consequences of this oversight can be often times disastrous to the business owners, the staff and families.
What are the most common risks to business?
YOU'RE THE BOSS: It’s your name on that commercial loan agreement and you’re ultimately responsible for making sure your business commitments are met.
COVERING YOUR COSTS: You may have been struck down by illness, injury, or your business affected by a natural disaster, but you’ll still need to ensure that your ongoing business expenses are met, and your debtors paid. Business continuity can be essential if you’re to keep your customers happy, and your reputation intact. Making sure it’s ‘business as usual’ will also help pay your mortgage and monthly bills at home, and preserve your family’s lifestyle.
RELYING ON OTHERS: Most businesses have key personnel with special skills or knowledge, without whom the business may struggle to operate effectively, or even survive at all.
LACK OF PLANNING: Without a proper insurance plan, the future of your company might well be at stake. Have you got a succession plan in place? This can help make sure your wishes for the future of your company and assets can be followed through, leaving your family and your business debt-free, and providing financial resources for your chosen successor if they need the funds to purchase the shareholding left by your departure.
Every business has vulnerabilities:
BUSINESS DEBT: Nothing can cripple, or even sink, a business faster than the inability to pay loan instalments, tax bills, rent, salaries and suppliers.
BUSINESS CONTINUITY: Productivity can be seriously disrupted when a key person becomes seriously ill, has an accident or dies.
BUSINESS OWNERS: Death or disability can force change on your ownership structure, making it necessary to draw on cash reserves and assets. It is vital to formalise any shareholder/partnership cover through a buy/sell agreement to ensure capital is distributed as agreed.
Save on your ACC levies:
Are you aware that there is an alternative offered by ACC to your default option?
At Zenith we work in conjunction with ACC and yourself to create a tailored ACC cover for self-employed people.
You gain three main benefits:
1. A potential saving on your levies
2. More certainty at claim time
3. Cover for sickness as well as accident
You are in control - you choose the amount of cover and you receive 100% of this agreed amount at claim time. Your current ACC cover only pays up to 80% of your previous year's earnings. In addition, you do not have to prove loss of earnings at claim time which makes the process far less complicated.
