ASU Insurance for smaller businesses

The subject of insurance for the self-employed or start-up businesses is occasionally subject to misconception and at times myth.

Here are some of the more prominent myths are outlined and the reality provided.

If you are unable to work, the government will step in to help

In reality, government help may be very hard to come by and even if you are successful in applying for it, the sums available may be very small indeed.

You might find that they are typically totally inadequate in order to meet standard living costs.

Self-employed people can’t get sick pay

In one sense, that might be true insofar as unless you take steps to protect yourself, in the event you are too sick to work you will find yourself without income. 

However, it is wrong to suggest that you may be unable to obtain some form of income in circumstances where illness or accident has robbed you of your ability to work.  If you take out an appropriate insurance policy to cover such situations, you may find that your policy might be able to generate an income for you.

There are various types of policy available – one such example being Drewberry accident and sickness insurance.

The premiums for accident and sickness insurance are prohibitively high

This should be self-evidently incorrect, as significant numbers of people take out such cover in order to protect their interests and those of their families etc.

In reality, this type of policy may allow you to select from different ranges of cover including things such as varying monthly income protection levels, definitions of incapacitation and duration of payments in the event of a claim.

By varying some of these parameters in line with your own requirements, you may find that it is easier than you think to obtain a cost-effective solution.

You need to be 100% fit to obtain this type of cover

No, in fact, policies of this type may be perfectly happy to cover people of ordinary health and fitness levels and even those who have some forms of pre-existing condition.

When you are taking out a policy, you will typically be asked to make certain comments about your existing health, including any past medical problems you may have suffered from. 

If you do have pre-existing conditions, depending upon the details you give, your insurance provider may take you on full cover without reservation but perhaps require a slightly higher premium.  In some cases they may be happy to take you on cover but exclude your pre-existing condition or conditions from their list of acceptable causes for a claim.

It is certainly more than worth discussing the situation fully with the potential insurance provider, as they may be able to offer you rather more flexible solutions than you might expect.  There is no need to write yourself off before you have even spoken to them!

Posted by on Nov 9 2012. Filed under Blog. You can follow any responses to this entry through the RSS 2.0. Both comments and pings are currently closed.

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