Guest Blog - Insurance and the small business owner
Posted on 20th May 2021 at 10:08
Do you have your insurance and policies in hand? Do you know how you're going to pay your bills if you are hurt and unable to work? Being self employed business owners, it is important that you have the right cover in place. This week, we would like to introduce you to Nathan Ansell of Hend Consulting to help you with your insurance needs.
As a small business owner, it can be so rewarding knowing every hour of work you put into your business, means the reward is all on you. However, the downside to this is everything is on you should something happen to you!
There are no more luxuries like sick pay, holiday pay, death in service or even others to rely on and work alongside to keep you motivated. One of the biggest things with owning your own company or being self-employed is looking after yourself and making sure you are able to work at all times (sometimes not in our control). It is very easy to put in copious amounts of hours as you are solely focusing on building that bank balance up to sustainable levels, but can sometimes mean sacrificing personal health.
As a company owner it is vital that you protect yourself, whether that being Professional Indemnity insurance, life cover, critical/serious illness cover, income protection or even private healthcare. There are huge benefits to having 1 or all of these covers, but there isn’t one approach that suits every single person, as we all have different lifestyles, worries, debt, family etc.
Life Cover is usually the first policy individuals look at, as it tends to be the cheapest option. As simple as this cover can seem, there are a few options that a business owner can look at. Personal life cover or relevant life cover, tend to be the most common. Personal cover is paid through your personal account and relevant life cover is tax deductible (if you have a LTD company). Both pay out in the event of your death to your loved ones, making sure you have the peace of mind, should the worst happen, they are taken care of. Most people don’t give this cover enough thought, as it seems simple, but if you discuss and source the right product/insurer, you are likely to not need to change that policy ever, unless lifestyle changes dictate.
Critical/Serious Illness Cover is exactly what it sounds like, should you be critically/seriously ill i.e. have a heart attack, be diagnosed with cancer, suffer from a stroke etc you will get a lump sum pay out to the value of cover taken. This can remove the issues of worrying about work in the short term and paying the bills as you can use that money however you wish.
Income Protection is the most commonly overlooked policy in the UK, as most people focus on the cost, relate that to a premium they might be paying for life cover, and it seems very expensive. However, this cover can be one of the most valuable when you are the sole earner. Your ability to work brings in the money, so should that be removed, how would you pay your rent/mortgage, bills, put food on the table, keep clothes on your children’s back etc? The harsh reality is, long term, money doesn’t grow on trees and savings only last so long. On average most households would’ve used all their savings within 3 months of income stopping! Scary thought I know, but realistic to many. This product pays out usually a monthly benefit should you be unable to work due to an accident or illness. If you had a very serious accident or illness that meant you could never work again, then the policy would continually pay out until the date you covered yourself, meaning 100’s of thousands of pounds could be paid out, and could possibly be the best insurance policy you ever looked at. Income Protection isn’t a simple pick one policy and go with it, and is highly advised to speak to an adviser to make sure you take the right cover and are managed correctly over the years, to make sure you are paying for a product that is always relevant to you.
Private Healthcare is a great cover that works alongside the NHS. The NHS is great and we are very lucky in the UK to have this service. However, waiting lists are incredibly long for treatments, and in some circumstances, you might not receive the treatment you deserve, because it doesn’t fit within the NHS budget. Private healthcare removes waiting lists, opens up more opportunities to see world-leading consultants, receive the best treatments regardless of cost and most importantly, give you the treatment you deserve and get you back on your feet as quick as possible, and able to work again. The NHS waiting list/pathway shows on average it takes 18 weeks to be fully referred and start treatments! With this cover, you could’ve already received treatment, recovered and back to work in far less time than it takes to even start the process through the NHS.
Nicola J O'Sullivan -
Founder | Xero Champion | IR35 Expert
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