Overlooked business protection strategies

Insurance options to keep your business safe

Your business is up and running and you’re enjoying the challenges and independence of being your own boss. But have you considered the potential risks you face? If your sole source of income comes from your business and you become ill or incapacitated and have to stop working, your income stops as well. What would this mean for your family, your mortgage, or other financial commitments?

Many business owners don’t realize that they can protect their business and themselves against unforeseen life events. If something were to happen to you or a business partner, you can ensure your financial obligations can still be met through insurance policies specially designed for business owners.

Here are three types you should consider.

1. Business Disability Insurance

You may already be covered by personal health and life insurance, but what would happen to your business if you found yourself unable to work for a period of time, or even indefinitely?

Business disability insurance – available for both short- and long-term – can replace business income in the event of an accident or illness, in the form of a monthly benefit intended to replace two-thirds of your after-tax income. Benefits can continue until you are able to return to work or you reach the age of 65.

Recent industry insurance research shows that you are much more likely to suffer from a disability than you are to die prematurely. With that in mind, disability insurance might even more important than life insurance for your business.

2. Business Interruption Insurance

While disability insurance will help you cover your personal monthly income requirements, your business has its own bills to consider. That’s where business interruption insurance steps in.

Working hand in hand with business disability insurance, business interruption insurance helps cover business expenses while you are off work. Things like rent, utilities, suppliers, and most importantly, your employees, all need to be paid even though you are unable to work. With business interruption insurance, you can keep your business functioning even when you’re not able to function at full capacity.

3. Key Person Life Insurance

When running a small business, one or two key people are often at the heart of your ongoing success. If something unexpected were to happen to them, you can protect your business so that it doesn’t grind to a halt.

Losing a key employee shouldn’t mean losing your business. While you can never truly replace a key person, you can ensure that your business remains afloat while you make new plans for the company or the role.

Businesses are eligible to purchase the same life insurance policies for a key person that are offered to owners, with flexibility and investment opportunities built in. Knowing that you would have access to enough working capital to keep the business running while you find and train a replacement can offer considerable peace of mind.

Finding – and filling – the gaps

The first step is to identify any gaps in your business protection coverage. Your insurance advisor can review your situation to help uncover what’s missing and identify solutions that work best for you. Reach out today and get the protection your business needs.