While key person policies protect small businesses in the event of the death of a principal partner, disability coverage is a different matter.
Small businesses are particularly vulnerable if a key person should become disabled. In some cases, the loss of income alone can cause the business to close, but professional overhead expense disability coverage can help to greatly reduce or even eliminate this risk. This is why small business insurance is essential. It is also important to note that, although individual disability policies will provide income to the person who holds the policy, they will do little to pay employees, mortgage or rent payments, loan obligations, utilities or any other “cost of doing business” expenses that may arise. If your business needs a good price then there are great van insurance deals available to disabled drivers.
Professional overhead expense disability insurance policies are set up specifically to cover the many day-to-day expenses that tend to add up quickly for small businesses in the event of an owner or key partner becoming disabled. In addition to the items already mentioned, many of these small business insurance policies will cover principal and interest on debts and taxes. Although most professional overhead expense disability policies will cover the salaries of certain employees, most policies will not cover the salaries of other partners. However, many policies will cover the salary of a temporary replacement for the disabled party.
The good news is that the cost of coverage for professional overhead expense disability insurance is typically very affordable, with premiums based on the age, lifestyle and health of the insured. Since coverage is so reasonable, it is advisable to purchase a high quality policy, even if it means spending a bit more. It will be well worth a few extra dollars a month if it ever becomes necessary to make a claim. Also, make sure to ask if partial disability, the existence of a future purchase option, and a carryover provision are included in the policy.
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