How Business Disability Insurance can Defend Your Safety

If you are an entrepreneur without Business Disability Insurance it may be time for a reality check. Assume that you were involved in an automobile accident and became paralyzed. How would your business be impacted? Think it can’t happen to you? Recent studies indicate that the rate of severe disabilities have increased by 400 percent compared to the last 23 years.  

Business disability insurance will provide you with income during such an event. Purchasing business disability insurance will safeguard your assets, net worth, lifestyle and the safety of your company. The key consideration is to determine how much business disability insurance you require. How much can you afford? Think out of the box. Do not fail to consider the most devastatingly possible scenario. You may have the resources to get through the short time. However, it’s very possible that the safety of your business could require a more long term solution. 

Key Factors in Business Disability Insurance

  • When speaking with prospective insurance agents know specifically how they define a disability. Some polices will not provide coverage if an individual has some residual capacity to work.
  • Consider the cost of living adjustment (COLA). In the case of a long term disability adjustments will be made. Look for programs available within your local business groups.
  • Consider the business overhead expense (BOE) option. In addition to your income other expenses like payroll and employee benefits can be incorporated.
An untimely disability can lead to an immediate financial crisis for your business. Business disability insurance serves to protect your business in the event you need time to recover from a serious illness or injury. 

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