Disability Insurance for Business Owners

Disability Insurance for Business Owners

Everyone wants to be an entrepreneur: where they run their business, employ workers, and also pay them. The most creative or business-minded persons want this kind of lifestyle. It is a two-way thing; starting a business can be exciting and at the same time very expensive. It depends on where you want to spend your capital on the business. 

The word “prioritizing” is key here, because you can decide to place an investment in buying large pieces of equipment, hire employees, carryout market promotions, technology, and what have you. There is an easy way to fail as a business owner which is to start a business without a business plan. The business plan is an overview of what the business will entail such as cash flow, expenses, employees, key players, and others.

There is also the risk for business owners such as loss of capital, accident, illness, etc; it is good they safeguard themselves, businesses, and family to keep it functioning if they become physically disabled. Disability Insurance offers this kind of protection for business owners. Therefore, it will be heartbroken to start a business without any form of disability insurance. Some of them become so nonchalant towards it, but the bitter truth is they will still need it in the long run of their business. 

There is always a probability for some sort of disability to occur that will make you stay away from your business for good 90days or further stages of your business. It has become so alarming that business owner without disability insurance runs out of working capital. This usually happens after they have spent much on trying to recuperate from their disability – disease, illness, accident, and fatigue.

Primary Aim of Disability Insurance for Business Owners

  • Business owners need this insurance for them to pay some of their expenses and provide for their families if they stay away from work.    
  • It keeps the business operating very well during difficult times.
  • This provides an avenue for someone to be in charge of their business in your absence.           
  • It serves as income replacement in case you have injury, accident or illness.               

There are other reasons for business owners to have disability insurance policies. As an owner of a business, you are the core force of the business, and also the starting capital. When preparing to run a business, one of the things you include in your business plan is eventualities. For a plan B in situations like this, makes you well covered when you start operating your business since you know there are ways to go about it.

How to get Disability Insurance as Business Owners?

There are two main options for you to get disability insurance either as a small or larger business owner and here they are:

  1. Through a Certified Organization Plan.
  2. Through Personal or Individual plan.

 1. Through a Certified Organization Plan:

Several organizations provide this disability to their employees, and this makes it simple for them to get theirs without any tension. This option, demands you belong to an organization. When you are in this group, there are some dues you pay such as membership dues. 

The price of getting a disability insurance plan when you belong to an organization will be at a reduced rate compared to an individual plan. This is one of the advantages you get to enjoy using this plan, but you are under and being controlled by the organization. When once they exit that disability insurance plan, you will need a new organization for new insurance.

2. Through Personal or Individual plan:

When you take this route as a business owner to buy a disability insurance policy, you buy directly from an insurance agent. One of the advantages you are going to enjoy it even when your business is not operating your insurance coverage will still with you. This is an option you won’t get under a certified organization. The major disadvantage is the price for getting disability insurance here is too expensive, and this depends on the features and benefits you have chosen. 

Several Key Steps between you and an Insurance Broker

1. Differentiate between disability insurance for you and your business:

There is so much difference between these two; you have to find insurance coverage for your family and your business.

For your home Income coverage: You can find out what is requested to cover for different expenses in your home such as cable bills, shelter, car payments, food, tuition, and other expenses.

For your business: This includes different payments such as rent, types of equipment, payroll, vehicles, advertising, and others. 

It is compulsory for you to strike a balance between these two if not one of them is going to suffer. To balance the both of them is to pay attention to your income before your business.

2. Buy from Professional Associations:

Buying from a group comes at a cheap price than when you are going on a personal plan. If you are affiliated with any group that is the first place you can find any rates for any disability insurance as a business owner. For instance, an association known as the American Dental Association offers disability insurance to its members at a low discount rate.

3. Bulk purchase of disability Insurance:

If you want to slash down the price of your disability insurance is to bring diverse needs to one carrier. This is where underwriters come in place on disability premiums if your business is large enough for them to add it in group voluntary disability coverage – or you can opt to shop your disability insurance with your business overhead policy.      


Operating a business is demanding especially when you are not in good health because you have to be mentally and physically fit to make a decision. It is a good idea to have a disability insurance attorney to help you buy a group or personal disability insurance plan to protect your business and family.

Author: Brandon

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