two make business partners at a desk

Business Owners and Professional Partners have unique risks and needs not usually adequately covered by their private family insurance plans.

Business is filled with uncertainty. Now you can plan for that.

While the risks to businesses are seemingly unending, the personal risks to Owners and Professional Partners can usually be found in 4 areas.

These become increasingly sensitive and complicated issues for business owners and business partners who may have specific personal medical issues that deserve an enhanced level of privacy and are kept totally separate from their commercial activities.

  • Company directors may need to use life insurance to protect the company trading debts, the director's account (when Director's funds have been lent to the company) or to protect the capital investment.
  • Business partners may need to use insurances to limit becoming personally liable for company losses as their personal homes are often cross-securing the company debts.
  • Partnerships and Investors may require company key-persons to use a range of insurances to help protect capital invested.

Why is this really important?

Personal insurance applications are one of the very few areas in business life where an individual's personal health and lifestyle is mandatorily required to be disclosed.

  • Your private health and lifestyle history is considered an integral part of the insurance application and assessment process. This is because personal insurances are contracts between the life insured/policy owner and the life insurance company, so there's a legal duty to take reasonable steps not to mislead under Section 20B of the Insurance Contracts Actrequiring the full and frank disclosure of all personal sensitive medical and personal health data.
  • Should an application for insurance be formerly declined, this can have unintended and long-lasting effects on so many areas that it becomes a risk to all future insurance.

This is why you need a specialty financial adviser from to help an individual and their company through the process.

Read our article published on LinkedIn Pulse - Professional people with chronic health conditions need their own life insurance adviser - and this is why (or in our blog here) about why many professionals and business owners are using our services for enhanced privacy.

How it all comes together.

Business Key Person and Debt Protection

The death or disablement of a key person could have a significant impact on the revenue of a business and therefore its ability to meet its day-to-day expenses.

  • This could be because the key person for example, has a unique skill or has particular knowledge relevant to the business or has relationships with key clients nationally or internationally.

Business Fixed Expenses Protection

Business Overheads cover, (also known as fixed business expenses cover), allows a business to continue to pay its fixed expenses if one of the business owners becomes sick or injured.

  • This type of cover usually pays a monthly benefit to the business, to meet its day-to-day fixed costs, generally for up to 12 months, if the insured person is disabled and is unable to work in the business at their full capacity.
  • All family businesses need an insurance firewall to reduce business liabilities becoming personal liabilities.

Insurance policies to cover business overheads are generally owned by the business entity, sole traders or partners (in the case of a partnership and the policy premiums are generally tax-deductible, and the proceeds are treated as assessable income to the business.

Building protection into your business planning is one of the most important decisions you can make.

Business Owner and Professional Partnerships protection

At some point, many businesses will borrow money from a financial institution or a director – this may be to provide a business with capital for a major purchase or improvement, or simply to provide a source of working capital.

The purpose of business debt reduction insurance is to protect the business against its debts and to protect the guarantor and their estate against any claim over their personal assets.

  • If the Key-person or Guarantor to a business loan experienced a serious illness, accident or worst - an unexpected death - a business could experience significant financial difficulty and may find it hard to continue to meet all of its loan repayments.
  • A loan default could result and then trigger a 'call-up' of the business loan facility (usually 7 days notice) with a demand for the loan to be repaid in full.
Most 'at call loans' deem a Key Person death or disability as an automatic trigger event to call up the loan.

Business Owner & Partner Succession Protection

If you own a business with other people, it’s important for everyone to agree on how the ownership of the business will be transferred, should one of the owners (or principals) pass away, become disabled, or leave the business for another reason; eg: resignation or retirement.

  • This is referred to as business continuation or succession, planning.

How that is made possible is usually heavily dependent upon;

  • successfully applying and establishing personal insurances for protecting business risks, and
  • involves the full and frank disclosures of all personal sensitive health and lifestyle information.

These create multiple specialty risks.

Unusual risks are the experts to manage and protect the information security and advice structures required by these business owners and professional partnerships.

logo of our parent brand Sapience FinancialAre you a business owner with additional business-related risk needs to consider?

For small business Business Owners, our parent brand Sapience Financial has a significantly more detailed website designed especially for Professionals, Partnerships & Business Owners (and their families) where we address many of the risks and personal liabilities many business people (and their families) carry. On that website site business owners can browse through more tailored information and education on business risks.

Feel free to continue yoiur business conversation with our small business financial advice brand Sapience Financial, here.

Where to Now?
Continue your journey…


About Us

Unusual Risks Insured provides support to those people who big insurance companies leave behind. We believe in giving every person the power to use life insurance products to protect & provide for their loved ones, their businesses, and their legacy — free from barriers of stigma and discrimination.

We know, as an LGBTQIA+ person (or someone who goes without labels entirely), you probably have specific financial advice, life insurance, and privacy needs.

  • We're committed to serving the LGBTQIA+ Community and its Allies.
  • For us, it's about change leadership and #AdviceEquality.

Why not make us part of your story, so if the unexpected happens to you or whoever is family to you, you'll have a backup plan in place to help you financially recover and life can still get better for somebody you love.

#LoveTakesAction  #AdviceEquality  #PrideInAdvice

contact drew browne advisor Unusual Risks Insured and Sapience Financial

Drew Browne, Senior Advisor

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