Business Expense Cover

At a glance:
If you are a sole trader, a small business owner or are in a partnership, Business Expenses allows you to claim for the costs associated with the running of your business including the cost of a replacement, if you are unable to work due to illness or injury over a two year period.

Why you need it:
Business Expenses Cover is designed for sole traders, small business owners or partnerships. It allows you to claim the costs associated with the running of your business while you are unable to work due to illness or injury.

Please note: Business Expenses Cover is unlikely to be available for businesses with more than 6 or 7 staff.

Key facts:

Level of cover:

  • The maximum monthly benefit is $20,000, subject to financial and medical underwriting.
  • Waiting periods of 2 weeks, 4 weeks, 8 weeks, 13 weeks, 26 weeks, 52 weeks or 104 weeks.
  • Available to occupation classes 1 – 4.


  • This cover is suitable for sole traders, small business owners or partnerships.
  • Business Expenses Cover provides cover for approved expenses incurred in running your business.
  • The benefit is paid monthly after the waiting period.
  • For the first year of claim, approved expenses are covered up to 100% of the insured monthly benefit.
  • If you are still disabled after the first 12 months you will be paid approved expenses for the next 12 months up to 50% of the insured monthly benefit.

Advance payment

We will pay 50% of the first month’s monthly benefit after the end of the wait period if your claim is accepted during the waiting period. Any advance payment will be deducted from the first month’s monthly benefit. Thereafter the monthly benefit will be paid in arrears. Conditions apply.

Inflation proofing

You can choose to have your cover increase – to a maximum of $20,000 cover – in line with the Consumer Price Index, regardless of health, to ensure your benefit keeps pace with inflation. We will advise you of the level of indexation each year.

Waiver of premium

  • The insurance company will pay the premiums on your policy while a disability claim is being paid.
  • This benefit expires at age 65.
“Approved expenses”
  • Accounting and audit fees
  • Advertising costs
  • Bank charges
  • Business-related insurance premiums excluding premiums for this policy
  • Couriers
  • Depreciation of equipment/plant
  • Electricity, gas, heating, water, telephone, cleaning and laundry costs, postage and handling
  • Employment of a locum
  • Leasing costs of plant and equipment
  • Motor vehicle costs
  • Property rates and taxes
  • Publications and subscriptions to professional associations
  • Rent and the interest component of any mortgage or loan payments relating to the business
  • Salaries and other related costs (e.g. payroll tax, superannuation contributions, FBT) for non-income generating employees of the insured person’s business
  • Such other fixed expenses incurred in the day to day running of the insured person’s business.

Shared expenses are apportioned based on your earned income as a proportion of the total earned income of all those people who are sharing expenses.

Prepaid or accrued business expenses will be apportioned over the period to which they relate

What we don’t cover:

  • Salaries and other related costs (e.g. tax, superannuation, FBT) for the insured person or his/her replacement and income generating employees of the business other than a locum
  • Salaries and other related costs for any of the insured person’s relatives unless that relative was employed for at least 60 consecutive days prior to the insured person’s disability.
  • Commissions or bonuses payable to the insured person.
  • Costs of a capital nature including the cost of any books, equipment, fittings, fixtures, furniture, goods, implements, merchandise or stock.
  • Depreciation on real estate.
  • Expenses that are recoverable, reimbursable or indemnifiable from internal or external sources.
  • Losses on investments.
  • Repayments of principal of any loan or other finance agreement.
  • Taxes levied by the Inland Revenue Department.