READER’S POLL: Is your business protected if you were to become disabled?
More than likely, you or someone you know is living with some form of disability. While not all disabilities prevent you from being able to carry out the necessary functions of your daily life, there are plenty of long-term disabilities that could permanently sideline you from performing the tasks that help your business to thrive. Studies show that just over 25% of American workers 20 years old or older will become disabled during their careers, making the potential for disability affecting your business and your team greater than you might think. With that in mind, how well have you protected your business?
What Would Happen to Your Business if You Became Disabled? |
If you answered…
“It might slow down for a while, but I’ve ensured its survival with a business overhead disability policy.”
Having a business overhead disability policy is a great way to protect your business. In the event that you become permanently disabled and are no longer able to perform your duties as a business owner, these policies provide a bit of a safety net for your company and your team. They will often buy you just enough time to find a suitable buyer or replacement in your absence. However, there’s still more you can do to prepare your business for such a moment. Begin working to remove yourself from the business’s daily operation. The less your organization relies on you for its operation, the better off it will be in the event that you’re no longer able to perform your duties. Additionally, decentralization can help to increase the value of your business, creating a larger payout when you decide to sell.
“My business would not survive if I weren’t able to work because of disability.”
This has got to be a sobering realization. On one hand, this could mean that your business’s daily operation relies much too heavily on you, the owner. Perhaps it’s time for you to begin delegating some of your responsibilities to trusted members of your team. This can help provide greater continuity and stability while also empowering your team to take ownership. On the other hand, this likely means that you’ve overlooked a key part of your risk mitigation strategy. Disability insurance is often overlooked or under-purchased. The reality is that you should have enough short and long-term disability coverage to sustain you and your loved ones while you recover (or find other income streams), AND enough business overhead disability to float your business while you find a suitable buyer to take the operation over.
“The business would continue on just fine. I’ve decentralized myself and I have all of the necessary insurance coverages.”
We are thrilled to hear this! It certainly sounds like you’re on the right track. But there are always ways to improve your business. Although you have coverage in place, it may be time to review your insurance coverages with an independent agent to guarantee you’ve got enough coverage (the value of your business may have grown since the policy was instated) and that you’re not overpaying for your coverage. After that, you could move on to strategic planning to improve the eight key areas of your business that have the most direct impact on its value.
Whether you are confident, worried, or simply unsure about your coverage, you should always talk with your insurance agent. He can best recommend options specific to your unique situation. And if you have business questions, we are always here to help you build plans that drive toward your goals. Let our team’s experience work for you!