Business Protection Calculator
Enter expenses, cover period and key-person values to see the premium.
Total cover needed
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Enter values above
Expense cover
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Key person cover
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Annual premium
Premium as % of monthly expenses
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Cover per month of expenses
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Worked example
With the default inputs shown below, this calculator returns the following results:
| Input | Value |
|---|---|
| Monthly business expenses ($) | 15000 |
| Months of cover needed | 12 |
| Number of key people | 2 |
| Cover per key person ($) | 100000 |
| Premium per $1,000 of cover ($) | 1.5 |
| Result | Value |
|---|---|
| Total cover needed | $380,000 |
| Expense cover | $180,000 |
| Key person cover | $200,000 |
| Annual premium | $570 |
| Premium as % of monthly expenses | 3.80% |
| Cover per month of expenses | $31,667 |
Values shown are produced by this page in your browser; change any input to update them.
How to use the Business Protection Calculator
- Monthly business expenses ($) — default 15000
- Months of cover needed — default 12
- Number of key people — default 2
- Cover per key person ($) — default 100000
- Premium per $1,000 of cover ($) — default 1.5
- Press Calculate to update the results instantly.
Frequently asked questions
The financial shock of losing someone whose absence would damage revenue or disrupt operations. The payout funds recruitment, interim cover and any drop in trade while the business stabilises.
A common rule is between one and three times the individual’s contribution to profit, plus enough to cover replacement cost and any loan they personally guaranteed.
For a business-owned policy covering the business, premiums are usually deductible and the payout is taxable. For personally owned policies the treatment is the reverse. Take advice before structuring.