BT has won a Canstar Innovation Excellence award for its “unique” keyperson income product, designed to help small businesses cope with employee sickness or accidents.

Keyperson cover is already provided by the general insurance industry, but BT says this only pays out lump sums for severe or permanent disability, death or trauma.

BT’s product recognises small companies are also at risk when staff are affected by short-term health problems, and that regular payments can be preferable to lump sums.

National Life Insurance Product Manager Scott Moffitt told insuranceNEWS.com.au the lost revenue caused by absence can kill a business.

“Keyperson income is targeted specifically at that need and would complement the more traditional keyperson strategies,” he said. “They cover very different aspects and address very different needs.”

BT says feedback on the product has been outstanding, with many customers wondering why it has not been introduced before.

Canstar says BT has “identified and filled” a gap in the market. “Income protection insurance has been available in the personal space for many years; this product extends that coverage concept to the more than 2 million small businesses in Australia.”