CANSTAR awards BT for innovation in underinsured business segment

BT has won a CANSTAR Innovation Excellence award for its unique income protection product that caters to the needs of small to medium businesses.

BT Protection Plans – Key Person Income was launched in May 2014, when BT identified a gap in the business insurance segment.

Scott Moffitt, BT’s national manager, life insurance products, said, “We’re so pleased that the innovative Key Person Income product has received this outstanding recognition because it helps to highlight underinsurance in this particular area of the small to medium business segment.

“Key Person Income helps small businesses meet their financial commitments and maintain business operations if a key person can’t work due to sickness or injury.

“It gives business owners peace of mind that their revenue will be maintained, and ensures business continuity.

“The life insurance team at BT are proud that we can protect even more Australian lives through this product.”

Less than 10% of all small businesses have any insurance in place to protect against the loss of a key person.* Underinsurance in this segment, along with the fact that previously there was no income- based product for small businesses which protects revenue, has left most small businesses exposed to the risk of revenue loss.

Key Person Income provides a monthly insurance benefit to a business for up to one year, if the business owner or key income-generating staff member becomes sick or injured and is unable to work to their full capacity.

To identify the key person risks for their business, owners typically discuss with their advisers what percentage of business revenue is tied to that person, then consider what continuity plans they have in place.

“By addressing the needs of a previously underserved business segment, BT is helping advisers provide a more holistic service to their clients who want to ensure their businesses continue to succeed,” Mr Moffitt said.