Many businesses revolve around the owner and his or her direct participation in the enterprise. Without the boss there – the business will may be unable to function. Businesses that are established by owners with this level of involvement are at risk, but something can be done about it. At some point during the lifecycle of a business, it is time to consider business succession – and to look at the consequences should an owner or key executive die, be seriously injured, or incapacitated. If you make the right moves with your insurance plans, the business is far more likely to survive past the loss of an owner or key employee.
When a Business Owner is Ill or Injured
Not only the business will suffer in this scenario – the owner, if seriously ill or incapacitated, may be left without a source of income. Insurance is merely hedging your bets against a possible future, which hopefully will never occur. Owner income insurance, coupled with disability insurance, allows a business owner and employees to replace some of the income that would have been generated. Without this form of insurance, a business owner who becomes seriously ill and is unable to work can be in a rough financial position, being forced to use funds set aside for retirement, or draining savings accounts. Income protection allows a business owner to make ends meet if an unexpected accident or illness occurs.
These policies can be put in place as an individual policy or offered as an optional benefit for employees. When all employees have the ability to participate in disability insurance, the costs for owner coverage can be reduced, making it more attractive from a financial standpoint. You can add an individual policy to increase the level of income as well. Every business and business owner is unique and insurance policies must be customized to fit the situation.
It is worth speaking to one of our local agents at Lowdermilk & Associates in Greenwood Village, Colorado to find out more about the programs available. If you already have some form of owner income protection, but are not sure if you have the right coverage, we would be happy to review your policies.