There are plenty of good reasons to have individual disability insurance to replace your income should you become injured.
But if you own a business, it’s not just about you. As a business owner, you’re probably the primary driving force of your business, as well as the bankroll. When you’re planning for your business, one contingency you need to include is what would happen if you get sidelined. Here’s the sobering statistic from the Council for Disability Awareness (CDA), an insurance industry group: One in four people entering the workforce will be disabled before retirement and can expect to be off the job for an average of 34.6 months. That’s almost three years. It’s not because they spend weekends racing motorcycles or commute long distances. Heart disease, back problems, cancer and other medical problems are more likely to cause disability than accidents.
Consider several key steps as you comb through options with your broker:
Disability income for you and disability insurance for your business are two different issues. You need to provide coverage for both your family and your business.
For the home front: income coverage. Figure what you’ll need to cover the mortgage, cable bill, car payments, tuition and food, among other expenses.
For the business: overhead coverage. Start with payroll, rent, utilities and any equipment or vehicle leases you carry. Employee benefits and advertising are two other costs.
How do you balance both? Barry Lundquist, president of the CDA, recommends addressing your personal income needs first, then taking on business overhead coverage.
Shop professional and industry associations. Group rates are frequently cheaper than individual premiums. If you belong to a professional association, that’s the first place to check for disability coverage rates. This is particularly important for stand-alone practices, which are likely to need a lower level of coverage (and have less financial muscle to dictate terms) than a larger business. The American Dental Association, for instance, sponsors disability income, overhead and business expense coverage for members at what potentially could be a discount.
Bundling gets you leverage. Another way to cut prices is to bring multiple needs to one carrier. You may get underwriters to come down on disability premiums if your company is large enough to add in group voluntary disability coverage for employees – or you can shop your personal disability coverage alongside your business overhead policy.
We’ve got you covered. Call Loftis & Wetzel Corporation at (580) 363-3434 for more information on Oklahoma City business insurance.