In a small business, the owner is often the main source of income and the person responsible for making important decisions.
A disability can impact a business in many negative ways. For example, if you are suddenly unable to work, you may not have the resources to cover your financial commitments. Your family might also suffer because they will no longer enjoy the standard of living they are used to.
Fortunately, there are solutions that can help you prepare for such a situation. Disability insurance allows you to protect your income and provides peace of mind should disability strike. It also gives you more flexibility and choice when it comes to health care options.
Here are three reasons why Canadian small business owners need disability insurance.
Protect your income
Disability insurance replaces part of your income if you become disabled and unable to work for an extended period of time. It helps with lost income due to illness or injury, allowing you to pay your bills during this challenging time. Having a source of income after a disability also allows for a more comfortable recovery and rehabilitation process. You will be able to focus entirely on getting better without having to worry about how you’ll pay for things like rent or groceries!
Protect Your Business
Disability insurance can help keep your business running smoothly if something happens to you.
While many small businesses are owned by sole proprietors who work alone, there are many more with employees. But no matter the size of your business, there’s one person that’s irreplaceable: you!
If you’re injured or become seriously ill, your business may not be able to continue. And that could be catastrophic for your livelihood, your employees and your customers.
Protect Your Family
You may be leaving your family without income if something happens to you.
When you are an entrepreneur, you can only depend on yourself. If you get sick or injured, it could mean not just the loss of a paycheck but also the loss of your business. Without disability insurance coverage, you may be leaving your family without income if something happens to you.
If you are a sole proprietor and become disabled, who will take over your business? And if a self-employed partner dies or becomes disabled, how will his/her surviving partner(s) buy out their share of the business? A disability insurance policy is designed to replace a portion of your lost income when you can’t work for an extended period of time due to injury or illness. This type of protection pays a monthly benefit in the event that your earning capacity is reduced by accident, sickness.
Income protection from disability insurance can help ensure your business continues to operate during an owner’s absence or provide for the transfer of ownership should that become necessary.
There is no question that there are risks involved when you go into the business world, and you need to recognize that those risks can destroy even the strongest financial plan. With disability insurance, you are protecting yourself against loss of income, in the event of a serious disability. Because of this, a policy can be seen as another safeguard that could help your business succeed in providing a safe workplace. If you run a small business in Canada and have not protected yourself against disability loss, it is time to start thinking about how you are going to do so.
Call today to discuss disability insurance options for your business.