The 'Numbers of Business' risk increases with the number of business partners

What are the odds of needing to claim on your personal insurance when you're in business?

The more people you're in business with the more the statistical realities of life increase and can push back against our hope for easy and risk-free business life. 

Hard Fact of Business: The more business partners you have, the more statistically heightened risks you need to manage.

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How Life's Statical Risks are Magnified for Small Business Owners

The more business partners you have, the more you increase the risk of one of them will;

• either unexpectedly die, or
• become totally and permanently disabled

and as a result, you and your business will be directly affected.

In fact, most business owners would have thought the opposite would be true; that they are less likely to have an event like this occur, and in fact were decreasing their risks exposure by taking on more business partners in their business.

Pro Insight: The problem with statistical risks is that because they are statistical and not personal, they are unavoidable - all we can do is better manage them and that is where good risk advice can help you face, your business partners and your families face tomorrows protected.

What does this mean for business owners and their small business families?

Any small business owner will tell you despite many good intentions and well-laid plans, life's reality is family life and business life responsibilities overlap.

• Whether its competition for time and resources or clarity around planning and direction, competing expectations and responsibilities, these are regular stressors business owners face
• Understanding how business and family risks can uncomfortably intersect can often go unnoticed until hard times arrive.

Many small business owners cite one of the primary reasons for their getting into business was to provide more time, flexibility and resources for their families so it makes sense that part of business planning is family and business protection.

What you can do today to plan for a more predictable tomorrow?

Get to know The Cost to Care for different types of cancer diagnoses.

• Ask us for a sample quote on $100,000 of Crisis/Trauma insurance cover so you know what's possible
• Talk with your partner about how you would want to approach a major health issue together.
• Talk with your parents about the health history of your immediate family
• Plan to live a bigger life.

Being prepared to bounce back

Holding a significant and uninsured risk is not an effective business plan — and its clearly a liability to any supply chain your business is part of and to those who reply upon your business (and those who may think you already have a backup plan for this in place already).

Where to start

Business owners need a Company Power of Attorney and an insurance strategy to protect them (and their families) from the business.

Call us for a confidential chat about your needs.

Three Key videos on understanding risks and using insurance as part of your insurance strategy

When should people use a life insurance policy? (3 mins)
What is the chance of needing to claim on a life insurance policy? (3.40 mins)
What are the possible outcomes for a life insurance application? (1 min)

Drew Browne is a specialty Financial Risk Advisor working with Small Business Owners & their Families, Dual Income Professional Couples, and diverse families. He's an award-winning writer, speaker, financial adviser and business strategy mentor. His business Sapience Financial Group is committed to using business solutions for good in the community. In 2015 he was certified as a B Corp., and in 2017 was recognised in the inaugural Australian National Businesses of Tomorrow Awards. Today he advises Small Business Owners and their families, on how to protect themselves, from their businesses.  He writes for successful Small Business Owners and Industry publications. You can read his Modern Small Business Leadership Blog here. You can connect with him on LinkedIn.  Any information provided is general advice only and we have not considered your personal circumstances. Before making any decision on the basis of this advice you should consider if the advice is appropriate for you based on your particular circumstance.