What is Business Continuation?
Business Continuation cover provides a monthly payment to your business if a key person is unable to work due to illness, stress, accident or injury. You choose how to use the money you receive… whether it is to cover overheads, hire a replacement person or to meet monthly loan repayments.
A key person is potentially anyone who affects revenue; not only you as the business owner but anyone whose loss would affect your business. Any employee that you would struggle to do without (i.e. your sales person) could be a key person… each business is different.
Why do I need Business Continuation?
Business Continuation allows your business to keep running, even when you lose someone that has a big impact on revenue.
Losing the revenue and expertise that you or a key person brings to your company (should you be unable to work) can have serious implications. Your business my struggle to pay ongoing expenses or wages and your cashflow will likely be affected. Business Continuation injects cash into your business to cover these costs and helps to get you through this period of uncertainty.
Doesn’t ACC cover me for that?
Many people mistakenly assume that ACC will take care of them (or their staff) if they can’t go to work. ACC only provides cover for injuries that are the result of an accident. Unlike ACC, Business Continuation covers non-accidental reasons for being off work, such as stress (the biggest cause of people needing time off).
What can I use the money for?
Anything you want… any insurance claims proceeds are paid directly to your company so you choose how best to utilise the funds. You may wish to cover your monthly loan repayments, pay monthly expenses such as rent, utility bills and staff wages or cover the cost of employing a replacement person… it’s your choice.