Insurance, why bother?!
Business Protection Golden Rules
It’s all a rip off right? Insurance never pays out. I’ve never had anything go wrong with me for the last (insert arbitrary number of years) so why do I need it?
Maybe it’s not even you, maybe your drummer breaks a leg, your keyboard player catches Malaria finding himself on an African odyssey, or your manager jumps ship for a better offer, or your sound man breaks up with his girlfriend because she is no commercial use to him anymore, gets a younger Thai model and becomes an international knob jockey for s***e boy bands…. you get the picture.
There are so many factors that can have a financial impact on you and your business that are totally out of your control and if you don’t think about mitigating the risk in any business, bands, banking or Bonsai cultivation, you’re running a razors edge of risk that means one unplanned event could see the whole show crumble like Ozzy after a 24 hour bender.
You cover your house, your office, your office equipment, your car, your dog/rabbit/cat/turtle, your house contents, your guitar of course! your phone, your tablet…and what about that “thing” that pays for all of that…you? That’s what business protection is.
The upshot is this, there is no difference between your personal assets and your business assets, you have to cover your ass! Most people think business protection is complicated and expensive but the principles are simple….
” Break your arm and can’t play the guitar for 8 weeks and your band and fans will potentially drift apart depending on what you’ve had to cancel and the financial implications of your actions.”
Here are my 4 golden rules for Business Protection:
1. It has to be to budget –
There is no point putting things in place you can’t afford on an ongoing basis. 6 months or 3 years down the line you hit a tough patch and cancel then you may not be able to get the same cover again if your health or circumstances have changed. Before I even look at products for my clients I try to find out what their realistic budget for business protection is because if you show products and prices, expensive “ideal world” scenarios, “I suggest Mr business owner you surround yourself in cotton wool and eat baked beans for the next 2 years” first then the reaction tends to be “That’s too much, I’ll have nothing”….
2. Something is better than nothing –
Prioritise, cover the basics first, most people can’t afford “ideal world” when it comes to most things. Yes I’d like that Vintage 1964 Chet Atkins Gretsch but it’s unaffordable and my ’64 reissue Strat will do the job for now. When I’m a rock star I’ll get the Gretsch and the titanium flight case! Sort the following list into order of importance (following a conversation with your adviser) Life Insurance, Share Protection Insurance, Key Person Insurance, Income Protection, Private Medical and start with the most important for now.
3. It has to be fit for purpose –
3. It has to be fit for purpose –
Head Honcho at Business Protect
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I’ve spent half my life working in Rock ‘n’ Roll so why would I want to put out a blog about business protection insurance…?
If you own a business often you are the business. Without you it will cease to function. That’s where a relevant life could be relevant to you.
It’s a slightly surprising (to me anyway) fact that there are more pet insurance policies than critical illness policies in the UK.
What would happen to the crowdfunders investments if the key people driving the businesses weren’t there anymore?
Partnership protection insurance for a partnership is like saying you need legs on a body, strings on a guitar, a helmet on a motorbike.
How you can have share protection as a one person limited company? This is where relevant life insurance is such a fantastic innovative product.
As an Relevant Life Insurance specialist I keep tabs on the current mortality rate. I checked yesterday and it’s still running at 100%.
I wouldn’t use a GP for my brain surgery operation and I wouldn’t use a generalist practitioner for my business protection…you might get it right…