Is this enough?  Consider this example.

Patrick is a dental technician operating out a small office in the city centre.  He provides services for many dentists making crowns, bridges and dentures. Patrick employs a trainee and a receptionist and he leases dental equipment. He has a young family and has wisely taken out income protection cover.

He gets glandular fever and is ordered to have at least six months off work. The policy pays 75% of his pre disablement income so he can meet the mortgage repayments and keep food on the table.  He plans to get back to his business as soon as possible. But will it still be there when he returns?

The fixed costs of the business still have to be met. His assistant and receptionist need to be paid and he must meet the rent and lease payments as well as pay electricity and other utility bills. He would like to appoint a locum to fill his shoes and keep servicing his existing customers.

All these costs can be covered by a Business Expenses policy designed to ensure the business survives whilst the owner recovers. If you run a small business your Avenue adviser can help you assess and manage these risks.

January 2010