Youve worked hard, been through the challenging times, it''s all been worth the effort and you now have a successful, thriving business that allows you and your family to enjoy a comfortable lifestyle.

Imagine what it would be like if suddenly you had a serious illness or injury that stopped you from doing the things that make your business successful. What would the impact be?

The answer to that question could depend on the risk management strategies you have in place for you and your business.

Business Expense Insurance

Many of you have probably considered taking out income protection insurance but have you considered business expenses insurance? It is designed for business owners to meet 100% of their share of eligible business overheads if they are unable to work through illness or injury. Business expenses insurance covers items such as: the salaries of the people that support you, rent, business insurances and equipment expenses plus all those everyday business overheads such as electricity and cleaning.

What (or who) is your most important asset?

An area of business insurance that is often overlooked is Key Person protection. When asked what their most important assets are, business owners invariably think of physical assets. Of course the physical assets are valuable, but it''s the intellectual capital provided by your key people - like you and your business associates - that employ these assets to generate the business''s profits.

Think about the skills, relationships and experience you and your team use day in, day out. If you were to lose a key person through death or disablement what would the financial consequences be?

Let''s consider Jade who owns a successful designer swimwear business. Wanting to maintain ownership but free up some time for her family she employed a manager, Yasmin whose management skills have greatly contributed to an increase in gross revenue and customer base for their designs.

Jade realised that if anything were to happen to Yasmin the business would suffer a drop in revenue. By taking out a Key Person policy to insure Yasmin, Jade has peace of mind knowing that she will have funds available to find and attract a suitable replacement, as well as smooth over the inevitable drop in profits.

The impact of losing a key person

• Would the business be forced to sell assets to maintain cashflow?
• Would your creditors still feel confident in the trading capacity of the business?
• Would any outstanding loans be called in?
• What effect could a drop in revenue cause?
• How will your business fund the cost of replacing one of your key people?

These questions and issues can be answered by having Key Person protection in place for you and your team.

Shelley Fearnley is the director of Pearl Insurance Group, a firm specialising in women''s insurance needs. Shelley established Pearl to advise and assist women to protect their most valuable assets - themselves, their families and their businesses. Her focus is to be the number one specialist advisor to women on their life insurance needs. Helping women gain confidence in making the right decisions and empowering them to take control of their lifestyle situation. For more information please contact Shelley on 02 9541 3317.

Shelley is an authorised representative of SJP Insurance Services Pty Ltd, Australian Financial Services Licensee No. 240938.