Known as Key Person Income, the new solution will protects the revenue of small businesses if a key person experiences an injury or illness and cannot work.
According to BT, currently only 6% of all small businesses have any insurance in place to protect against the loss of a key person, while small businesses include one-third of the entire business segment in Australia.
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The new income solution will provide a monthly insurance benefit to a business for up to one year, if the business owner or personnel is sick or injured and unable to work.
BT Life claims that the Key Person Income will fit into types of insurance business cover including public liability (held by 90% of Australian small businesses) and professional indemnity (39%).
BT national manager of life insurance products Scott Moffitt said; "We saw that the biggest underinsurance gap for small businesses relates to key person insurance, so we’ve developed a solution with BT Key Person Income."
"These insurance products have focused on severe or permanent disability, yet businesses are more likely to be impacted by short-term disability."
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By GlobalData"With the launch of Key Person Income, there is now an opportunity for advisers to help their small business clients with putting in place a risk management strategy to protect revenue in the event of short and long term disability," Moffitt added.
