When it comes to insurance, Business Overheads Insurance may still be the least understood and familiar type of insurance concept. The question still pervades because it sounds more complex than it really is.

In a nutshell, Business Overheads Insurance covers the fixed costs of a business if the owner cannot work due to illness or injury. The costs could include rent, property taxes, vehicle leases, employees’ salary, and utility bills.

Just imagine if you were a business owner involved in an accident which rendered you temporarily disabled. How long do you think can your business survive without you at the helm? How would you meet your financial obligations?

No one wishes for accidents and severe injuries to happen. However, statistics have shown that approximately 50% of people around 35 years old have suffered a disability which extends up to 90 days. Three months is a long time and a big opportunity to make an impact, negative or positive, on your business.

However, it should be understood that Business Overheads Insurance is different from Disability Insurance which usually pays the benefit until a person is 65. A Business Overheads Insurance policy on the other hand, pays a shorter benefit up to two years after a waiting period. The logic behind this is the belief that a business can only survive up to 2 years if the business owner is disabled.

Taking into consideration the level of risks that business owners have, AMP, one of the leading insurance providers in Australia, has introduced the AMP Business Overheads Insurance.

Who is the AMP Business Overheads Insurance For?

The AMP Business Overheads Insurance gives you the option to flexibly choose a plan that would complement your needs. The Business Overheads Insurance can be owned by an individual or a company that pays the overhead costs of a business. Below are some stipulations for eligibility.

For Businesses:

• Small business partnerships which consist of 5 or less partners and sole traders.
• Businesses where profit is earned through services rendered, such as consultants and professionals.

For Individuals

Though the Business Overheads Insurance is suitable for businesses, individuals can be eligible if:

• The individual is largely responsible for generating the cash flow of the business.
• The business cash flow would considerably fall or cease if the individual is unable to work
• The individual will take responsibility for the payment of the business expenses.

AMP Business Overheads Insurance Features and Benefits

Since AMP Business Overheads Insurance was designed to protect you and your business when an injury or illness renders you unable to carry on your responsibilities, the features and benefits included in this policy aim to do just that. Listed below are some of the key features and benefits of the policy:

• 100% cover for your business. You have an option to choose a maximum monthly benefit of up to 100% of your monthly business expenses. At present, the maximum monthly benefit is $1,250. Furthermore, the premiums are waived while your fees are being covered.
• Total disability benefit. The business overheads expenses incurred each month will be paid during the period that the insured is rendered disabled. Business overheads include fixed costs such as:

• salary of non-income producing staff
• rent and mortgage interest payment for the business premise
• property taxes
• lease costs of office equipments and motor vehicles
• utility bills
• advertising costs

• Cash flow bonus. In addition to the total disability benefit, there is a cash flow bonus paid to you in order to help you cope with the ups and downs of your eligible business overheads. This means that in months where you have lower business expenses, any unpaid monthly benefit can be carried over to the next month. The benefit period can be extended up to 6 months until you have been paid 12 times the monthly benefit.
• Overseas transport benefit. You will be reimbursed for your airfare cost if the insured has been outside Australia for 30 days and rendered disabled for 14 days.
• Tax deductible premiums. Premiums are counted as business expenses thus, it becomes tax deductible.
• Automatic increase to your cover. There is an automatic increase in your maximum monthly benefit based on the percentage increase in the CPI. This means that your premium always stays relevant to the inflation.
• 12 month recovery. You will be reimbursed for whatever business expenses for up to one year that you are unable to work.
• Waiting period feature. This feature lets you return to work during the waiting period for 5 days or less in a row without the waiting period starting again.
• Worldwide cover. This gives you peace of mind knowing that wherever you are in the world, you are covered 24 hours a day, 7 days a week.

How to Get AMP Business Overheads Insurance

Getting cover for your business overheads expenses is easy as long as you are an Australian citizen between 19 and 59 years of age.

Before applying, you can even get a quote online to give you an idea how much premium you are going to pay. You should keep in mind, though, that certain factors, like age and health, may affect the price of your premiums.

Furthermore, you are also given a flexible payment option that complements your budget. This means you can pay monthly, half-yearly, or yearly as you deem easier to your budget.

Your business is as important as any other assets you have, especially if this is a source of income for you and your family. By getting AMP Business Overheads Insurance, you can be rest assured that your business will keep on running even in the most trying of times.