Most people understand Income Protection – it replaces your income if you can’t work.
But if you run a business, there’s another risk that often gets overlooked:
- Your business still has bills to pay.
That’s where Business Expenses Cover comes in.
What is Business Expenses Cover?
Business Expenses Cover pays a monthly benefit for up to 12 months to cover the fixed business expenses if you are unable to work because of a serious injury or illness.
Think of it as keeping the lights on while you recover.
Typical expenses covered include:
- Rent or mortgage interest on your premises
- Staff wages (non-income generating staff)
- Utilities and phone bills
- Equipment leasing costs
- Professional memberships and subscriptions
- Business related Insurance premiums
These costs don’t stop just because you’re not working, and they can quickly become overwhelming.
It’s Not the Same as Income Protection
Income Protection is designed to replace a portion of your personal income and help you pay living expenses (mortgage, groceries, school fees, etc.)
What it doesn’t do:
- It won’t pay your business rent
- It won’t cover your staff wages
- It won’t keep your business operating
So, relying on IP alone can create a serious gap if you’re a business owner.
Why It Matters
If you’re unable to work your income may stop, but your business costs don’t.
Without cover, many owners may be forced to:
- Dip into savings
- Take on debt
- Or shut down altogether
Even a short setback can have long-term consequences.
Why They Work Better Together
And here’s the key point: Income Protection protects you. Business Expenses Cover protects your business.
They are not interchangeable; they’re designed to work together.
One without the other leaves a gap, however, together, they give you the breathing room to:
- Recover properly
- Keep your business afloat
- Return without starting from scratch
The Bottom Line
If your business depends on you showing up, it’s not just your income at risk – it’s everything behind it.
The right protection plan doesn’t choose between you and your business – it covers both.
To better understand if this cover is right for your circumstances, speak with our team. We’ll help you identify any gaps in your protection strategy and explain how Business Expenses Cover and Income Protection can work together to safeguard both you and your business.
Contact Carrick Aland’s Wealth Planning team on 1300 466 998 or visit carrickaland.com.au/wealth-planning/.
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