Those who are self-employed or own small businesses are at particular risk of losing substantial income if they become disabled or fall ill in a manner that affects their ability to run their business. Fortunately, there are special disability insurance policies that deal with these setbacks. The most popular kinds of business insurance protection policies for disability include the following options, which may be built into certain policies or available as an option with others:
- Disability Buy-Out: This option is available when a small business is co-owned by two active owners and one of them becomes disabled. Basically, it allows the disabled co-owner to sell his share in the business to the other co-owner for a reasonable amount.
- Business Overhead Expense (BUE): This option pays the fixed business bills, such as rent and staff salaries, in the event of your disability.
- Key Person Insurance Coverage: This option provides reimbursement for the financial loss of a key employee due to sickness or accident.
- Recovery Benefits: This option supplements your income after returning to work full-time for the percentage lost during the period spent reestablishing a customer base.
Should I Consult an Attorney?
A business attorney experienced in commercial insurance can research the different contract features and options available to protect your livelihood in the event that you become disabled. In the event that disputes arise from your or your small business’ attempt to use the the disability insurance policy that you have, an attorney can assist you in handling those disputes.