Do I Really Need Disability Insurance if I Own My Own Business?

Even a short-term disability can become a major issue, especially for those who are self-employed or who run their own business. While it is possible to purchase disability coverage as a business owner, there is often a great deal of confusion regarding which policies, plans, and providers may afford the needed level of protection. Identifying the appropriate level of coverage and giving insurance providers accurate information on earnings history in order to qualify for certain coverage options are never matters that should be left to chance.

Determine the Appropriate Level of Coverage
Many business owners pay themselves a salary out of their business's earnings. This is an arrangement that can greatly complicate disability coverage in the event of an injury. Plans that only cover the income that owners are being paid and not the operational losses that may be incurred, should owners be unable to manage the day to day operations of their business, are rarely the best option. While a policy that is able to cover operational losses for the duration of either a short-term or long-term disability can be far more expensive than plans that only protect an individual worker, they may also prove to be a critical asset.

Establish Income
Numerous records are often required by insurance providers in order to establish worker earnings and the cash flow and overall profitability of a business. These figures are often essential for determining rate costs, insurance premiums, and the level of coverage that may be purchased. New startups and ventures that have only been in operation for a short time can make it far more difficult to establish the income and earnings figures that are required in order to qualify for certain plans and coverage options. New business owners often require the services of a professional in order to find and select a disability policy that will be better suited to their needs.

Work with an Insurance Broker
​Being limited to only a single provider can drastically reduce the range of coverage options that business owners have to choose from. Working alongside a professional brokerage or service provider helps to ensure that a greater range of options, providers and solutions may be found. For small business owners who lack the income and earnings history needed to qualify for coverage through a provider, the assistance of a professional broker can be a tremendous asset.

For more information on getting disability insurance, or if you have more questions on how to decide the best insurance for your business needs, contact us now! We provide small businesses and individuals various types of health plans to help them protect their health while meeting their financial goals.

References:

• Olympia Benefits
• Your Richest Life
• InsureStat