Norwest NSW
Loss of Income Insurance
Bills don't stop when income does. If you or your business can't earn for a while, you still have rent, wages, loan repayments and the household to cover.
Loss of income cover is a broad term, so it helps to be clear which type you mean. There are two common ones.
1. Business loss of income
If an insured event like a fire or storm stops your business trading, business interruption cover replaces lost gross profit and covers ongoing costs.
2. Personal loss of income
If you're sick or injured and can't work, income protection pays you a portion of your income. Business expenses cover can also pay your fixed costs. This suits owner-operators and sole traders.
What it can cover
- Lost profit while your premises are closed after an insured event
- Ongoing costs like rent, wages and loan repayments
- Extra costs to keep trading from a temporary site
- A monthly benefit while you're unable to work due to illness or injury
What to check
- The waiting period before payments start
- How long benefits are paid for
- What definition of disability or loss applies
- Whether the sum insured matches your real earnings
Case study
An example
A sole trader electrician injures his back and can't work for two months. His income stops but his van payments and insurance don't. Income protection pays him a monthly benefit after the waiting period, and business expenses cover can pay the fixed costs.
Illustrative example only. Cover depends on your policy wording.
Contact us
To put cover together, tell us:
We're based at Suite 2.02, 2-8 Brookhollow Ave, Norwest NSW. Call 02 8660 2305 or email admin@idealbrokers.com.au.
Ideal Insurance Brokers, Norwest NSW 2153. Ideal Brokers Pty Ltd (CAR No. 001262504 | ABN 65 623 205 952) is a Corporate Authorised Representative of Metrix Connect Pty Ltd ACN 635 286 136 as the trustee for the Metrix Connect Hybrid Trust ABN 55 742 327 931 | AFSL No. 525491. This page contains general information only and does not take into account your objectives, financial situation or needs. Read the Product Disclosure Statement before buying.
Loss of income insurance FAQs
Business interruption responds to damage to your premises. Income protection responds when you can't work due to illness or injury.
Often, but speak to your accountant. We can't give tax advice.
It's usually based on a percentage of your income. We'll work out what suits you.