Business Expenses insurance pays a business owner a monthly benefit if he/she gets sick or has an accident, paying up to 100% of the fixed business overheads.
These would include rent on the business premises and equipment, staff wages and superannuation, accountant’s fees, advertising, bank charges, telephones, electricity, cleaning etc.
Most Business Expenses contracts are indemnity contracts and, where this is the case, you will need to provide evidence of the actual monthly expenses that you have paid while you are on claim so that the claims assessors can calculate the benefit that will be paid to you.
Insurance companies typically pay the business expenses policy-holder for 12 months only or until the yearly benefit (the sum insured) has been exhausted. Payments would normally cease then after 18 months.