Consider for a moment what your most important business assets are. Your initial thoughts might include the obvious and tangible items, such as plant and equipment, motor vehicles or property.

In many cases however, the most valuable asset is the intangible value of your contribution through your skill, knowledge and motivation to make your business successful.

If you take your presence out of the business, two things are likely to happen:

  • the performance of the business would deteriorate; and
  • the expenses of the business would continue largely unabated.

You don’t need your accountant to tell you that this is a formula that could send you bankrupt within months, if not weeks.

Business Expense Insurance provides a monthly reimbursement of the regular fixed expenses of a business if the life insured is unable to work due to sickness or injury.

Fixed expenses of a business can be difficult to meet if there is no income for the business. Especially when you take into consideration the salary of any non-revenue generating employees, rent or interest on business loans.

Business Expense Insurance is paid as a monthly income stream for up to 12 months. The life insured has a choice of 2 or 4 Week waiting periods. The minimum benefit is $2,000 per month up to a maximum of $30,000 per month.

As a guide, the following table lists expenses that are covered and not covered by Business Expense Insurance.


Insurable Expense

Non Insurable Expense

• accounting fees

• consumables

• advertising

• depreciation

audit fees

• disposables

• business insurance premiums

• equipment

• business interest payments

• fittings

• cleaning

• fixtures

• costs ordinarily incurred in the employment of non-revenue generating employees

• implements

• electricity

• loan principal

• gas

• merchandise

• heating

• personal remuneration

• leasing costs

• products or wares

• net cost of a locum (a person sourced

external to the life insured’s business and

is a direct replacement for the life insured.

The ‘net cost of a locum’ arises when the

gross sales, income or billings generated

by the locum are less the fees incurred for

that locum).

• salaries of revenue-generating employees


• professional dues


• stock or any other items of a capital nature

• rates


• rent


• telephone charges


• water


• any other fixed expenses that are normal

and customary in the conduct of the life

insured’s business that will continue to be

incurred if your client is unable to work.



Business Expense Insurance premiums are entirely tax deductible if owned by the life insured or their business.

Here at The Quinn Group we can help you with any queries you might have regarding Business Expense Insurance. For this, or help with any other business related issue click here to submit an online enquiry.  Call us on 1300 QUINNS (1300 784 667) or on +61 2 9223 9166 to book an appointment.