Business Risk Protection Plan

Business risk insurance can make sure that your business remains afloat no matter what happens. It can include cover to repay external debt or cover loss of profit, ongoing business overheads and even loss of personal income. 

Our professionally structured Business Risk Protection Plan aims to give you the right mix of business risk insurance, competitively priced and tailored to your business needs.

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Protecting your business

If you, your business partner or another key person in your business died or was unable to work for an extended period of time as a result of illness of injury, it could have a significant financial impact.

Thankfully, protecting your business from the loss of a key person is actually quite simple. It’s about thinking ahead, seeking advice and making a plan. And that’s where we can help.

Business Risk Health Check

Business risks can often pose complex questions. So, it makes sense to work with a specialist Westpac Adviser so your business is better able to get the protection it needs and avoid overspending.

Your Westpac Adviser will take you through a Business Risk Health Check. This is a simple process where we ask you questions and help identify the risks that are specific to your business.

We’ll then give you a written contingency plan which outlines how you could protect your business against the loss of key people. We call this your Business Risk Protection Plan.

What the Business Risk Protection Plan tells you

Your Business Risk Protection Plan will: 

  • Outline your business’s current financial position
  • List the unique issues identified as facing your business
  • State the preferred outcomes you require
  • Recommend insurance product solutions to help mitigate the risks identified

Your Business Risk Protection Plan may use a combination of insurance products tailored to meet your specific business needs.

Covering your business

Most businesses have three areas of vulnerability that need to be covered:

  Business risk How we can help
Debt Repayment

Business loans are often secured by the personal guarantees of the principals and their families. If you were to die or suffer a serious illness, the cash flow required to service any business loan may be affected.

If creditors are not prepared to roll the loan over and instead they call it in, your personal assets and those of your family may have to be sold to repay it.

Certain insurance products recommended in a Business Risk Protection Plan could provide the cash required to help repay business loans to protect your assets and estate.
Business Continuity If you or your key employees were unable to work for an extended period of time due to illness or injury, the financial impact could be huge. Insurance products recommended in a Business Risk Protection Plan could provide the cash needed to replace any loss of revenue and find and recruit a suitable replacement.
Ownership Continuity

If a director or shareholder dies, the estate usually has the right to demand immediate repayment. In situations where there are two or more partners or co-shareholders in a business, significant problems may arise if one dies or suffers a major illness.

You and the surviving partner or co-shareholders could face the following issues:

  • having the deceased or seriously ill partner's family come into the business or nominating someone to look after their interests
  • selling assets or the business itself to pay out the interest of the deceased or seriously ill partner or co-shareholder
  • the departing shareholder or their family could end up retaining a share of the business that they do not want and cannot sell

We can help you develop a Business Risk Protection Plan that can provide the money to enable the surviving partners or co-shareholders to buy the deceased or seriously ill partner's interest.

You should also get legal advice in relation to this, including the drawing up of a formal arrangement for one partner or co-shareholder to buy the interest of another, and to establish how that interest will be valued.

Five simple insurance options to cover your business

Your Business Risk Health Check aims to help establish the type of Business Risk Insurance you need. We have a range of options to choose from.

  What is it? Uses
Life cover Pays a lump sum to the policy owner if the life insured dies or is diagnosed with a terminal illness. Clear debt, take care of ownership buyout issues or help with business continuity.
Trauma Cover Pays the policy owner a lump sum if the life insured is diagnosed with a specified serious illness. Clear debt, take care of ownership buyout issues or help with business continuity.
Total and Permanent Disability (TPD) Cover Pays the policy owner a cash lump sum if the life insured is disabled and is unable to ever work again. clear debt, take care of ownership buyout issues or help with business continuity.
New to Business Cover Cover for businesses that have operated for less than four years. Provides a fixed monthly payment to help the new business survive if the owner or a key person is disabled. Provides an essential financial safety net for when an owner or key person is disabled.
Business Continuation Cover Cover for well established, profitable businesses that have been running for more than four years. Provides a fixed monthly payment to the business to help the business survive if the owner or a key person is disabled. Supplements cash flow to lessen the financial impact of the key person’s absence and can be used to pay the cost of finding and paying a suitably qualified replacement.
Disability Income Cover Insures you against loss of personal income if you can’t work due to illness or injury. Provides a monthly payment to replace your lost personal income.

Important: The information above is provided for general information purposes only and is only a summary of the insurance products referred to. Terms, conditions, exclusions and limits apply and more detail can be found in the relevant policy document. We recommend you speak to your Westpac Relationship Manager for more information. The Business Risk Protection Plan is arranged by Westpac New Zealand Limited (“Westpac”) and are underwritten by Westpac Life-NZ-Limited (“Westpac Life”) and/or third party insurers. The availability of insurance cover is subject to the acceptance and approval of a complete application and will depend on the relevant underwriter’s assessment of risk. Westpac New Zealand Limited does not guarantee the obligations of Westpac Life and/or third party insurers.

Westpac Life is a wholly owned subsidiary of Westpac Financial Services Group-NZ-Limited which is, in turn, a wholly owned subsidiary of Westpac Banking Corporation ABN 33 007 457 141, incorporated in Australia. Westpac Life complies with the Practice Standards of the Investment Savings & Insurance Association of NZ Inc. Neither Westpac Banking Corporation or Westpac New Zealand Limited guarantees the obligations of, or any products issued by Westpac Life and/or third party insurers.  Westpac may receive commission payments as a result of the arrangement of policies underwritten by Westpac Life and/or third party insurers.

Westpac Life-NZ-Limited has an AA- Insurer Financial Strength rating given by Standard & Poors (Australia) Pty Limited on 6 August 2013. The rating scale is: AAA Extremely Strong, AA Very Strong, A Strong, BBB Good, BB Marginal, B Weak, CCC Very Weak, CC Extremely Weak, SD or D Default, R Regulatory Supervision, NR Not Rated. Plus (+) or Minus (-) following ratings from ‘AA’ to ‘CCC’ show relative standings within the major rating categories.