Adviser urges small business owners to get covered

With a business and family relying on them, small business owners have a lot to protect. But statistics show many are playing a risky business when it comes to their insurance cover.

According to a 2006 survey by the Investment and Financial Services Association (IFSA), less than half of small business owners feel they have adequate insurance cover .

So if they know they’re not properly covered, why aren’t they doing something about it?

Craig Burling from Lea Life Brokers Pty Ltd says part of the reason is the fact insurance is often not well understood.

“One of the biggest objections I hear about insurance is that it’s too expensive. But many of my new clients didn’t know some insurance premiums were tax-deductible”.

Two types of cover that are usually tax-deductible are income protection and business expenses insurance. Together these make a good package for the business owner according to Mr Burling.

“Income protection can cover up to 75% of their personal income, and business expenses insurance can take care of their fixed costs like rent and electricity. So by combining these two types of policies, the business owner can cover both their personal, and work expenses. And potentially reduce their tax bill.”

Mr Burling urges all small business owners to review their insurance needs regularly with their financial adviser.

“Your cover has to keep up with your growing business – not to mention your family. There’s no point putting it off until it’s too late.”