International business insurance company Zurich has announced a strategic partnership with Australian accounting and financial services firm Crowe Horwath to help raise awareness of the importance of business expenses insurance.
According to industry publication Insurance Business Online, a significant proportion of small to medium enterprises are underinsured, with a massive 92 per cent operating without business expenses cover. This insurance product is designed to help cover fixed business expenses if you are unable to work due to sickness or injury.
“Many people believe that workers’ compensation, business interruption insurance, or even an income protection policy will cover fixed business expenses if they are unable to work due to sickness or injury,” Zurich’s head of sales strategies and research – Life Risk, Andy Marshall, told Insurance Business Online on April 9.
“Personal income replacement cover is designed to cover up to 75 per cent of an individual’s taxable income from their business. If they have fixed business expenses and no business expenses cover, then they only have half the protection needed,” he said.
The partnership between Zurich and Crowe Horwath will enable the organisations to reach a vast number of small business clients, advising them on appropriate risk management strategies. This includes ensuring small business owners are aware of the insurance products available.
“Without proper risk management strategies in place, many of these businesses would be forced to cease operating if the business owner were to suddenly fall ill or injure themselves for a prolonged period,” Crowe Horwath head of insurance Maurice Thaung explained.
“Planning is an important part of any business and business expense cover could be the difference between a business being forced to close or remain running while the owner recovers.”
If you would like more information about how business expense cover could help you and your company, get in touch with the MGA Insurance Brokers team today.