KEY PERSON /
loss of revenue COVER
In small to medium sized businesses it is quite common to have one or two key people who will generate most of the company’s revenue. But, if they are ill or injured and can’t work what happens to your business?
KeyPerson/Loss of revenue insurance is a monthly amount paid to the business in the event a key person is off work due to a illness or injury. This would allow the business to either replace the revenue that person generates or employ someone to replace them while they are off work. Like income protection there are wait period options before claims are payable however key person/loss of revenue insurance is normally only short term (up to 3 years off work).
Benefits of Key Person/Loss of Revenue Cover:
- This is a tax deductible business expense.
- There are no offsets such as ACC if the key person is entitled to this.
- Partial disability support benefit – ability for the business to be paid a partial monthly income in the event the key person is able to go back to work part time.