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Business
Cover Solutions
As a responsible business owner you want to spend your time running your business and have the reassurance of knowing that regardless of what life may bring your way around an illness or an injury, that your business with continue to grow and flourish.
Barbara-Lee is a Business Specialist who helps businesses build tailored insurance solutions. You may know of someone who has suffered an unexpected event, often out of the blue, and you would have seen how this has impacted on their business and family. By taking the time to put a plan in place this can give you the reassurance of knowing that no matter what, your business and family will be financially secure.
The first step in putting together your business plan is to identify your risks that your business could face. Barbara-Lee can tailor you a plan that meets your unique needs and as she has access to all the comprehensive insurance companies she can ensure that the best solution for your business is found.
Key Person Cover
An effective business continuity plan needs to consider every future possibility, including the death or disablement of your most important people.
Just as it’s wise to insure business assets against loss, its common sense to insure specialist or skilled people who use those assets or to create business profitability. Ideally, all identified key people should be covered, including yourself.
A critical illness is a serious illness or disability, such as cancer, heart attack or stroke. Statistics tell us that 50% of men and 33% of women will suffer a critical illness before the age of 70. So how would you pay off your debts and expenses? Would your customers and suppliers still want to deal with your business? And what would your business be worth if you had to sell? It’s worth thinking about.
The solution is Key Person Cover.
Key Person Cover injects cash into a business on the loss of a key person through death or disablement. This money can provide funds for securing and integrating a suitable replacement, replace lost profits and help to reassure customers and creditors that the business is not experiencing a financial crisis.
Debt Protection Cover
You need debt protection if your business owes money to Banks, Finance Companies, the IRD, landlord, staff, creditors or suppliers.
The early death of a business owner or key person in a business can be devastating for any business.
Statistics tell us that in a business with two partners around 35 years of age, there’s a 40% chance that at least one business partner will die before the age of 65. So how would the business continue to operate and grow without the key skills and knowledge of the owner or key person?
If you’re in a business partnership how can you ensure your business and your family’s best interests are looked after even when you’re not around?
The solution is debt protection cover.
Debt protection is designed to create the cash needed to repay business debt if an insured key person dies, is disabled or becomes critically ill.
Farmers Cover
As a primary producer, such as a farmer, horticulaturalist or viticulturalist, your livelihood depends on your ability to work. So if you or a key person in your business is suddenly taken out of the equation through an illness or accident, how would your business continue to generate enough revenue to provide for you and your family?
The solution is Farmers Disability Cover.
Farmers Disability Cover pays a monthly benefit if you need to take time off work on the farm due to illness or injury. It means you can hire a contractor to work on the farm and perform the duties that you would do until you are able to return to work.
It means you will have the cashflow available to pay regular payments on mortgages or rent, funding day to day expenses, paying wages and covering operational expenses.
Business Continuity Cover
There are many benefits to running your own business. For a start it gives you the freedom to set your own goals and do things your way. But just as importantly, it provides you and your family with a lifestyle that may not have been possible if you were working for someone else.
So what would happen to your business if you or a key person in your business was suddenly taken out of the picture? Accidents and illnesses happen when you least expect them – how would your business continue to operate without you?
The solution is Business Continuity Cover.
Business continuity cover is essential for keeping your customers happy, paying your bills, and preserving your family’s lifestyle. So, whatever the size and nature of your business, you need to give full consideration to your insurance needs. Where are you most vulnerable?
Business Continuity provides a choice of options that cover Business Overheads, Key Person Disability Income Protection and Locum Cover. The cover you choose is intended to provide the business with a monthly income to cover continuing expenses, or to reimburse the cost of employing a replacement.
ACC Levies
What ACC Covers
The Accident Compensation Corporation (ACC) provides comprehensive, no fault personal injury cover for all New Zealand residents and visitors to New Zealand.
Their role is to:
- Prevent injury
- Make sure people can get treatment for injury, if it happens
- Help people get back to everyday life as soon as possible.
What ACC is unable to cover
ACC does not cover you for:
- Illness or disability as a result of an illness (eg a stroke or heart attack)
- Stress (unless related to sexual abuse, personal injury or traumatic event at work)
- Ageing process
- Injury to teeth arising from their natural use
- Hernia by coughing or sneezing
- Injuries that come on gradually and are not due to a work task (non-occupational gradual process injuries).
What does this mean for you?
If you have an accident and are self-employed or you are a non PAYE shareholder: If your business has run at a loss you may not qualify for weekly compensation and ACC will only cover medical costs. This could leave you, your family, your assets and your business at risk if you are unable to cover the costs of replacement labour or continuing business expenses.
If you are ill: ACC will not cover any medical costs or provide you with any income during your period of disability. This could put you, your family, your livelihood and your business at risk if you are unable to meet your regular outgoings or business expenses. Your recovery could also be impacted if you are unable to afford private medical care or specialist tests and are required to wait for treatment.
How to reduce your ACC levies – and afford Complete Protection
Our business plans include an analysis of your ACC Levies. If you are Self Employed or a non PAYE Shareholder Employee, you do have options. Although ACC is compulsory they have an alternative product that can be more suitable for the self-employed.
You can choose the level of weekly compensation you would like to receive and at claim time you have the certainty of knowing how much you would receive from ACC, without having to prove a loss.
The aim is to have you in a contract which covers you for illness and injury and if this is possible them we can use some of the funding you currently put into ACC levies to help fund complete cover. This means you can choose not to solely rely on cover from ACC and thereby save (potentially thousands) on your levies (the higher the income, the higher the savings). This saving goes a long way to covering the cost of full Income Protection so that you and your family can be fully protected! Why pay twice if you don’t need to?
Shareholder Protection Cover
Have you thought about what would happen to your business if you or one of the partners or shareholders were to die or become seriously disabled?
If the future control of your business is important to you, and you want to ensure that your estate and dependents receive a fair price for your shares or business interest, an effective business plan involving Partnership/Shareholder Purchase Cover with a Buy/Sell Agreement is an absolute “must have”. This avoids consuming personal cash reserves, the sale of personal asserts or the need for a substantial loan. Is this an issue for your business?
The solution is Shareholder Protection Cover.
Partnership/Shareholder Purchase Cover and a Buy/Sell agreement can provide certainty about the future ownership of your business on the death or serious disablement of a partner or shareholder.
It can create the funds and mechanism for the sale and purchase of a business interest; help find a future owner or owners for the business; provide the means whereby an existing business owner can receive a fair price for his or her business interest.
