Under the major heading “Do I need to insure all my wages?”, several ways of insuring wages were considered, and the benefits and disadvantages of each were discussed. The methods considered were:
Full Payroll cover
Ordinary Payroll (limited or excluded)
It was explained that the only way to fully protect a business against one of the greatest ongoing expenses of any organisation, is to insure Payroll 100% as a part of Insured Gross Profit. This cover also provides the Insured with the most flexibility in the event of a loss.
The basic principle of Dual Wages was explained. It was also demonstrated how it was possible to obtain more flexibility with the cover for the same premium, rather than have additional severance pay cover.
A reminder of the two points raised at the start of this section. The first is that most business owners and managers claim that their greatest asset is their staff. Why not treat them that way when it comes to insuring their wages. Secondly, the wages and salary you are protecting may be your own. Many times the failure to insure correctly has meant the business has failed or the person who made the decision lost their job.