Whether you’re a small business or slowly growing above 10 employees, it’s always a good idea to have small business disability insurance. Disability insurance allows you to turn off the paycheck when employees underperform for health reasons without looking like the bad guy or inviting legal trouble. Company disability insurance gets you out of this jam and is a smart business decision whether employees want it or not. 

 

Additionally, small business disability insurance takes advantage of the unique position of the business to acquire income protection on favorable terms.  Many employees can’t get income protection coverage on their own due to medical underwriting and cost. You are able to fill this essential need at a lower cost and with reduced medical screening, even if employees pay for it themselves.   

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There are several options out there when it comes to disability insurance for small business owners. Some of the many options you can choose include: 

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Group Disability Insurance – There are two options when it comes to funding group plans: employee-paid and employer-paid. Some common group plans include short-term disability insurance, long-term disability insurance, life insurance, accident insurance, cancer insurance, and long-term care insurance. They are designed to deliver income during times when you are hurt or too sick to work. 

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Individual Disability Insurance – This form of insurance is similar to a group policy, except with more guarantees, features, and funding flexibility. Some individual policies have the potential to provide up 100% coverage under specific conditions.  

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Key Person Insurance – Key person disability insurance allows your business to offset the financial burden of compensating the key man or contributor if they were to become unfit to work. This small business disability insurance would pay benefits to your company if this scenario were ever to occur.

   

Executive Disability Insurance – Executive disability policies provide business owners coverage while they are out of work and offer a higher compensation than typical disability leave. Whether jobs are scarce or executives are on hold due to non-compete disclosure agreements, this type of policy will keep them well protected. 

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If your business is growing, small business disability insurance might be the right path for your company. To learn more about small business disability policies, contact the professionals at Disability Underwriters today.