Business Disability Insurance

Written by Patricia Tunstall
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Business disability insurance is available to cover the inevitable consequences for a business of one person's disability. Whether an owner is ill or not, the expenses of any business are ongoing. These fixed outflows consist of rent, salaries, payments of bills, and utilities. One of the best disability insurance policies reimburses an owner for overhead expenses during the owner's illness or injury that is incapacitating.

Another type of business disability insurance is key-person coverage. Each employee in a small business is essential; should a worker become ill or injured, that person's function in the organization might come to a standstill. This insurance provides income to the business during the disability of a crucial employee.

Disability Buy-Out Coverage

What would happen if one partner in an enterprise became temporarily or permanently disabled? The remaining partner might well be unable to continue the business, or might suffer a severe loss of income. In this case, buy-out coverage funds a buy-out of the disabled partner's interest in the business by the remaining partner.

Any business owner should look into these various kinds of income protection insurance and be aware of the pitfalls that can severely affect the venture. Small businesses, single-owner businesses, and partnerships are especially vulnerable when illness or injury deprives the organization of an essential participant. Specialty disability insurance might well be the difference between ongoing success and permanently closing the doors on the operation.

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