There are risks in running any business, big or small. One of the biggest risks is a disabling injury or sickness that prevents the business owner from working in his or her business for a period of time. However, business owners who have individual disability protection and business overhead expense can keep their businesses afloat in the event of a disabling injury or sicknesses. Given the growing number of disability cases each year, insurance carriers are providing disability products that can prove to be a lifesaver not only to individuals, but also to businesses. Statistics show that it’s prudent for business owners to have disability protection to protect their income and business.
According to the Disability Management Sourcebook, severe disabilities have increased 400 percent over the past 25 years from the age of 17 to 44. Before the age 65, one in seven people will become disabled for five years or more.
Darrell Zahorsky, About Money correspondent, suggests the following when insuring a small business.
Definition of Disability
Insurance brokers and financial professionals should understand and explain the definition of disability in the disability insurance policy to their potential clients; the definition of disability in a individual disability policy and a business overhead expense policy is critical because this is what determines the insured’s claim. In some disability insurance contracts, if the insured is not able to perform his or her job but he or she can work in another capacity, he or she may not be considered disabled. Disability specialists at Source Brokerage, Inc. can explain the different definitions of disability to you and ensure you provide a contract with the best definition of disability available for your client’s occupation.
Protect the Business Owners Business
In the event a business owner becomes too sick or inures to work, how will he or she pay the expenses of the business? A Business Overhead Expense policy will reimburse the business for overhead expenses such as payroll, utilities, rent, and other operating expenses; however, it will not pay the business owner’s salary. He or she will still need to invest in an individual disability insurance policy to protect his or income in the event of disabling illness or injury.
Take the lead
Disability insurance can be complex for those not familiar with the products. Working with disability insurance providers, such as Source Brokerage, Inc., who represent top-rated insurance carriers, can make it easier to provide a variety of disability insurance products to insure attorneys, doctors, and small business owner clients. Let Source Brokerage, Inc help you offer peace of mind and good service to your clients.
(Article Excerpt and Image from Reminder: 11 Tips For Buying Small Business Disability Insurance, http://sbinformation.about.com/od/insurance/a/disability.htm)