Small to medium-sized businesses are the backbone of the US economy – comprising 99% of all US businesses and almost 50% of all US
employees
.
There are many different types of income protection insurance for businesses and in most cases, combining policies will
offer your clients the best coverage.
Some business disability insurance products are geared more towards protecting the business and the business owner while others
cover the business and its employees. For more about protecting employees, visit
Multi-Life Solutions.
Business Overheard Expense (BOE) coverage protects the business by reimbursing most business expenses that come up if the business owner becomes disabled. Business expenses can include utilities, building lease, employee salaries, etc. A BOE policy will keep the lights on and keep the business running if the owner is unable to work due to injury, illness or accidents.
This type of insurance will help a business owner protect his/her interest in a business or partnership in the event of a disabling accident, injury or illness. A funded policy will provide the financing necessary to buy or sell an interest in the business. Buy/Sell Expense disability insurance coverage can be determined by the business’ book value, market value and potential future earnings.
This type of insurance provides additional protection for individuals and groups already covered by group Long-Term Disability (LTD) insurance. Supplemental disability insurance such as this is frequently written on executives or more senior employees to provide more coverage than other employees. This type of coverage also applies to employees of a business.
This type of coverage can be purchased for individuals who have reached the domestic cap for disability insurance ($10K/month for physicians, $30K/month for others). This income protection adds additional coverage for high income clients who a need for more.
Impaired Risk coverage is a unique type of coverage that can be helpful for clients who have situations where traditional disability insurance coverage isn’t applicable. People with medical conditions (cancer, diabetes, high blood pressure, etc.), use tobacco products, have high risk occupations/hobbies are great candidates for Impaired Risk coverage. Do you have a client who is a pilot or sky diver, this is the perfect policy for them.
For many businesses and small private practices (lawyers, doctors, CPA’s, etc.), there is generally a key person who is largely responsible for the business’ success. If the key person is unable to work, the office and the business may suffer. For example, if a dentist has an accident or illness preventing them from earning an income, his/her office, employees, etc. may suffer. This type of coverage can protect the business if the Key Person is unable to work.
Bank Loan Disability Insurance policy indemnifies a business’ bank loans. If necessary, this form of insurance can help repay loans if the policy holder is unable to work.