Business Expenses Insurance

Business expenses insurance is available to certain self-employed persons who wish to cover their business expenses should they be unable to work because of illness or injury. Payments are generally made on a monthly basis and can reimburse up to 100% of approved business expenses. The payments are generally limited to 12 months.

The Business Expenses Insurance policy provides a monthly benefit that reimburses allowable business expenses if the insured person is disabled, in most cases for longer than the specified waiting period.

The benefit period is the maximum period for which a claim for disability is payable. The benefit period for any one claim starts at the end of the waiting period and continues until the earlier of:

• the end of a 24 month period;
• the total of benefits paid for the claim reaching 12 times the monthly insured amount; or
• the date when cover ends.

Allowable business expenses means the normal day-to-day expenses incurred in the insured person’s business and include:

• Accounting and Audit fees
• Bank fees
• Cleaning costs
• Electricity and gas costs
• Property rates
• Equipment Hire
• Motor Vehicle Leases, registration and insurance
• Interest payments on business loans
• Rent on business premises
• Salaries of employees (not directly involved in generating income)
• Telephone costs.

Is business expenses insurance tax deductible?

Premiums for Business Expenses Insurance are tax deductible and any proceeds are assessable as income in the event of a claim.