BT Financial Group has launched an income protection product for small businesses.

The key person income offering protects revenue should a crucial company member suffer injury or illness and be unable to work.

“We saw that the biggest underinsurance gap for small businesses relates to key person insurance, so we’ve developed a solution,” National Life Insurance Product Manager Scott Moffitt said.

The product provides a monthly insurance benefit for up to one year.

It can address disruption to management and operations, loss of clients and contracts, a drop in business confidence and lost revenue, according to BT.

“Small businesses have been able to insure for negative financial impacts if a key person dies or suffers from total and permanent disability or a trauma event,” Mr Moffitt said.

He says such insurance products have focused on severe or permanent disability, but businesses are more likely to be affected by short-term disability, which the new offering addresses.