Whether you own a large or small business, you will need business insurance. Business owners should work with their insurance company to ensure they have appropriate insurance for their business needs to protect them from property damage, bodily injury, loss of income, and lawsuits.
While it may be more common to think about obtaining commercial auto insurance, health insurance, and workers’ compensation insurance, business owners also need income protection insurance. No matter what type of business you run, income protection insurance can protect your family’s financial future and ensure your business continues operating even if you’re unable to work.
What is income protection insurance?
Income protection insurance provides money for individuals who are unable to work due to an illness or injury. Depending on the type of insurance policy you acquire, you may receive 85 percent of your regular salary from income protection insurance. Income protection insurance can enable you to afford your regular expenses without financial hardship during the time you’re off work. Anyone with dependents and large debts, such as a mortgage, will benefit from the peace of mind that comes from knowing their inability to work won’t force them to sell their home or accrue debts to cover their personal expenses.
It’s a good idea for small business owners to obtain income protection insurance. Business owners may not have the same benefits employees have, such as paid sick leave. Some business owners opt out of workers’ compensation insurance, which means they cannot receive this type of compensation if they’re injured at work. It’s a good idea to review your insurance needs to ensure you have appropriate coverage.
Some tools can help you find an income protection policy.
You can use an insurance comparison tool to review income protection insurance plans. The tool prompts you to enter relevant information, such as your gender, age, location, occupation, and income. Once the tool processes your data, it compiles a list of insurance companies that offer an insurance policy for income protection that may suit your needs. You can use the information from the tool to compare coverage amounts and policy premiums. It’s also important to review the policy terms, such as the waiting period before you’re eligible to receive benefits and the length of time you can receive benefits. This type of insurance is offered through indemnity value policies and agreed value policies, which will affect how much money you receive each month from your benefits and the cost of your insurance policy.
The tool also provides contact information you can use to contact the insurance companies listed if you want to discuss your insurance needs with a company representative.
You can save money by bundling your insurance packages together.
What type of business insurance do you need? Business owners may need several different types of insurance. Your insurance needs will, in part, be determined by the type of business you operate and whether you have employees or contractors who perform critical tasks.
Liability insurance is one of the most common forms of insurance businesses need. Professional liability insurance can protect your company from a lawsuit due to a mistake that causes bodily injury. Regular liability insurance covers the cost of property damage or bodily injury that occurs at your business location. Public liability insurance is used to cover legal costs if someone sues you or one of your employees.
Property insurance covers the cost of damage to your property. For example, if someone breaks into your store and steals property, your property insurance will cover the cost of damages to doors or windows and replacing the stolen property.
Health insurance and life insurance are crucial if you run a business with multiple employees. Health insurance covers the cost of health care. Life insurance provides financial benefits in the event of a person’s death. Many employees consider these forms of insurance to be job benefits because it’s usually cheaper to obtain employment-based health insurance than purchasing your own insurance policy.
Although employers may opt-out of workers’ compensation insurance, you must have this insurance for your employees. Workers’ compensation insurance pays for medical expenses and employee wages when an employee is injured at work.
Your company may also need commercial property insurance, commercial auto insurance, and data breach coverage. It’s a good idea to discuss your insurance needs with your insurance company to ensure you have the coverage you need. You may also qualify for discounts that could lower your insurance premiums if you bundle your insurance plans together.
Income protection insurance provides financial compensation to those who cannot work due to an injury or illness. This insurance provides beneficiaries with peace of mind since they know they won’t face financial hardships due to their inability to work.