What is business expenses insurance and how does it relate to Income Protection?

Business Expenses insurance reimburses fixed business overheads (rent, lease, wages, utilities) when illness or injury stops the owner working. It is a separate cover from IP. IP replaces your personal income; Business Expenses keeps the business solvent.

Most panel insurers offer Business Expenses as a standalone or bolt-on cover. Two do not. Benefit periods are typically 12 months, reflecting the cover's purpose: bridge a temporary absence, not fund permanent disability.

Panel availability

| Insurer | Business Expenses cover | |---|---| | AIA | Business Expenses Plan, AIA Priority Protection PDS (Version 32, 9 November 2025), Section 6 | | Zurich | Zurich Business Expenses standalone product, Zurich Wealth Protection PDS (1 November 2025), Business Expenses section | | TAL | Business Expense Option, TAL Accelerated Protection PDS (12 December 2024) | | OnePath | Business Expense Cover, OnePath OneCare PDS (October 2025) | | ClearView | Business Expense Cover (not available inside super), ClearView ClearChoice PDS (13 May 2024, update 5 June 2025), up to $60,000 per month | | Acenda | Business Expenses Platinum Option, Acenda Insurance PDS (27 September 2025), page 34 | | Futura | Business Expense Cover, Futura Protection PDS (1 October 2025) | | NEOS | Not offered as a separate cover | | Encompass | Not offered as a separate standalone cover |

What it pays for

Business Expenses reimburses allowable fixed expenses you would incur regardless of working. Typical inclusions:

• Rent or lease on commercial premises
• Utilities (electricity, gas, water, internet)
• Employee salaries (non-revenue-generating staff)
• Loan and equipment lease repayments
• Property and business insurance premiums
• Accounting, legal, and professional fees
• Property rates and security

Variable and personal expenses are excluded. So is the owner's personal income (that is IP's job).

How the benefit is calculated

Most panel PDSs reimburse the lesser of the insured monthly amount or the actual eligible business expenses. ClearView caps at $60,000 per month and can pay up to 100% of eligible expenses (ClearView ClearChoice PDS, Business Expense Cover section). At claim time, you provide accountant-prepared profit-and-loss statements, BAS, and invoices to substantiate the claim.

How it pairs with IP

Self-employed clients typically need both:

• IP: replaces 70% of personal income (drawings or salary)
• Business Expenses: covers the business's fixed running costs

Without Business Expenses, an extended disability can collapse the business. Even if you recover personally, the business may have been wound down. With both covers, IP funds your household, and Business Expenses keeps the business solvent until you return.

Tax

Business Expenses premiums are generally deductible to the business under ITAA 1997 s8-1 as a normal business expense. Benefits paid to the business are assessable income to the business but are then offset by the expenses they reimburse. Discuss the specific structure with your accountant: how the business is set up (sole trader, company, trust) affects treatment.

Common considerations

• Insurer choice matters: NEOS and Encompass do not offer it as a separate cover, so a NEOS client needing Business Expenses must use a different insurer for that piece.
• The benefit period is short. Plan for what happens at month 13 if you are still disabled.
• Underwriting reviews business financials. Have 2 years of BAS and tax returns ready at quote time.