As a business owner, have you considered what would happen if you became permanently sick or injured before retirement age? In this situation, adequate insurance cover is required to carry the business through a potentially difficult period.

A properly constructed insurance portfolio is vital for the stability of any small business. Of course there are numerous insurance policies available and, as various businesses are ore prone to particular risks than others, not all policies will be relevant to all businesses. We are happy to talk through the options with you.

Most businesses, however, should consider key-person and/or income protection insurance.

Key-person insurance provides funds to the business in the event of a key person dying or becoming totally or permanently disabled. It is taken out to cover income that will be lost until a replacement person is found and can also be used to cover any loans or commitments owing by the business.

Income protection insurance is insurance for the individual. Many different policies are available but in most cases a policy will pay up to 75% of a person's substantiated income through to retirement age or even until death in the event of sickness or accident.

Business owners should consider this:

- What would happen if you were unable to perform your normal duties?
- What would happen if you were run over by the "proverbial bus"?
- Who would take over the business?
- How would the bills be paid?
- Would the bank call up the loan?
- How would the principal's family survive?

These are important questions to consider ad others will be relevant to your particular situation. For example, if you are in partnership with other people, you need to consider the implications of one partner dying and surviving family members wanting to sell out. Appropriate policies are available for this type of business structure.

As with any insurance portfolio, you need to consider the risk involved to yourself, your family or your business and cover yourself accordingly. Permanent illness or injury or even sudden death may not be part of your business plan, but they can and do happen, and you or your family could be left seriously financially burdened unless you take prudent precautions. Key-person and income protection cover should definitely be considered as part of any small business insurance portfolio.

If you have already implemented a sound insurance portfolio, make sure you review it annually with us to ensure your cover continues to be relevant and adequate. You need to be mindful of any changes made to business operation and also take into account the current business climate.

Contact us for more information and assistance in this area.