Not being able to repay your debt can sink a business fast. This includes tax, loan repayments, suppliers, rent/lease, salaries and wages. When your unable to pay these overheads, the business fails.
The business relies on key people to continue productivity to produce the revenue and pay the bills. But what happens when the business’s key person is unable to work? How do you cover the business debt without any income? And what happens to the long term viability of the business?
Covering the debt of your business is one of the areas insurance is used to reduce a business’s risk. This is done by the business taking out insurance cover on their key person.
Should that business owner or key person suffer a disability or death the business will receive a lump sum payment which can be used to clear this debt and protect the financial viability of the business.
Benefits of Business Debt Protection
- Pay off external debt
- Continue business operations
- Protect the value of the business
- Worldwide coverage
- Some benefits have no offsets or requirements for financial evidence
