Disability – Don’t Let It Disable Your Business

by Chuck on Aug 29, 2013

Let’s face it – it’s a fact of life that accidents, injuries or illness will happen to all of us at some point in our lives. Have you considered the impact it would have on your business if one of your key employees (or yourself) becomes disabled? Unfortunately, both you and your employee will quickly become all too aware of the repercussions.

group health plansAccording to the U.S. Census Bureau, nearly one in five Americans will become disabled for a year or more before they reach the age of 65. That’s a staggering statistic. And what’s worse, is that this statistic means that there is a good chance you or one of your employees will become unable to work at some point in your career.

Don’t let this alarm you. Your independent insurance agent has the answer – Key Person disability insurance. This type of insurance ensures that your business will remain financially stable in the event you or a Key Employee becoming disabled. Often people assume that their general group health plan, or another plan your company has in place, includes compensation should someone become disabled. This is often true, but it’s just not enough to make a difference. Often those types of coverage are for short-term disabilities or only partially cover the expenses. It’s just not enough.

Think of it this way – you care about the wellbeing of your employees as well as the stability of your business. So, when you or a key employee becomes disabled and unable to work, the stress level and associated risks rise dramatically. Key Person disability insurance was designed to alleviate that stress and lower those risks by providing financial stability for both the company and the employee. Your company continues to thrive and you or your employee can focus on recovery.

Consult your local independent insurance agent to discuss what key people in your company need to be covered. Below are some scenarios. If you feel that any of them apply to your business, you will want to consider key person insurance in addition to your group health plan for that person.

  • Your employee would be extremely difficult, time-consuming or expensive to replace
  • The person is highly skilled with unique training
  • An employee with exclusive ties to key clients
  • An employee who is a company leader and has irreplaceable knowledge
  • Small business owners who would face financial hardship in losing a key staff member, employee or client

Most likely, at least one of the above points struck a chord with you. You’ve worked hard to build up your business and there is no reason you should run the risk of losing any of that momentum should you or one of your Key employees become disabled. Review your group health plan with your independent insurance agent and discuss the possibility of adding Key Person disability coverage to your insurance portfolio. Be sure to discuss:

  • The amount of disability income needed
  • The length of the benefit period
  • Residual benefits
  • Cost of living increases
  • Short term vs. long term disability

Remember, accidents happen…that’s just a fact of life. Stay on the safe side and protect your business and your key employees. You’ll be glad you did!