The types of coverage for disability insurance are designed to deal with almost any kind of situation that might arise in a business context. Wherever lost income due to illness or injury would affect an owner or employee, income protection insurance is probably available to replace a portion of that income. Because of the variety of possible circumstances, disability insurance comes in a variety of forms.

The fundamental components are individual and group disability insurance. The latter is offered by employers; individual plans are just that--obtained by an individual outside of work. Group plans are cheaper, but have fewer benefits, or less coverage. If coverage is offered by your employer, however, consider getting it as a base on which to build by obtaining a supplementary individual policy.

Plans with Variable Terms

There are many types of coverage for disability insurance, including specialty policies for businesses. Buy-out insurance funds the buy-out of a disabled partner by the healthy partner. Key person insurance mitigates the serious affect of the disability of an essential employee. Overhead insurance assists a disabled owner with fixed expenses such as rent and salaries.

Another basic division is short-term and long-term disability insurance. Here, it is important to understand the definition of "disabled" and "disability" that is used in the policy. Some policies only pay benefits if you are confined to a hospital! Many policies are more generous than that, so explore Web sites at your convenience to find the best plan for you.