Income Protection

Disability Solutions for Business Owners

For business owners, a disability may not only affect personal income, it can affect the business, too.  If you or one of your key employees suddenly become too sick or hurt to work, you could face a disability triple threat:

  • Maintaining personal income
  • Covering ongoing business expenses
  • Preserving the value of your business interest/impact of losing a key employee

If you became too sick or hurt to work, in addition to protecting your income, you may also need to consider:

1. Paying business expenses:  Overhead Expense insurance is designed for owners of small- to medium-sized businesses whose personal service is key to the continued earning of business income.  It may help keep your business running by reimbursing eligible covered business expenses while you recover from a qualifying disablity or illness.  

Potential benefits:

  • Helping offset eligible business overhead expenses such as rent, utilities, and other covered operating expenses

  • Supporting business continuity during a temporary disability

  • Helping maintain relationships with customers, vendors, and creditors

  • Assisting in preserving business value while the owner recovers

 

2. Disability Buy-Out Planning:  Do you have a plan for the future of your business?  If you or one of your business partners became totally disabled and could not return to the business, do you have a plan or the means to buy out the disabled partner?

Help protect your business from a permanent disability by funding a buy-sell agreement with Disability Buy-Out (DBO) insurance. It may allow remaining owners to continue the business without using business cash flow, obtaining loans from financial institutions or selling shares of the business to get working capital.

Potential benefits may include:

  • Providing funding to support a buy-sell agreement

  • Helping establish a predetermined valuation and transfer process

  • Supporting business continuity planning

  • Helping remaining owners maintain ownership interests without relying solely on business cash flow or financing

 

3. Protecting key employees:  You rely on your key people. They make significant contributions to your business.  Many employers protect their businesses from the loss of key employees due to death, but have you considered what would happen if they become disabled?  If one of them were no longer around due to a disability, what would that mean for the future of your business?  How would cash flow, revenues, profitability and morale be affected?  

Key Person Disability Insurance is an one way lep to provide your business with funds necessary to help handle the loss of a key employee and recruit and train a replacement. You (the business) pay the premium and are the owner of the policy insuring the key employee in the event of a qualifying Total Disability. Benefits can be used at your discretion. 

The potential value of this solution to your business:

  • Assisting with recruiting and training a replacement

  • Helping offset revenue disruptions

  • Supporting temporary staffing needs

  • Demonstrating that contingency plans are in place for unexpected events

 

Help protect your business and its future with Individual Disability Insurance solutions. To find out how much coverage you need request a quote.

 

Disability insurance policies contain exclusions, limitations, eligibility requirements, waiting periods, and definitions of disability that vary by carrier and policy. Coverage is subject to underwriting approval. Benefits are payable only when policy conditions are met.

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