Why Small Business Owners Need Income Protection
Let’s face it, as a business owner, you’ve got enough to worry about. According to a recent survey by Paychex, 42 percent of professionals experience moderate stress levels on a regular basis — and money and work are key contributors to that stress. The Bank of America Business Advantage Small Business Owner Report in 2017 reveals that running a business is four times more stressful than raising children — and that one in five business owners have had a nightmare about their business failing.
One of the best steps you can take to decrease the stress levels, is to have a plan in place for the unexpected. Income protection does just that. Whether it’s disability insurance or business income insurance, it’s a way of mitigating risk and having a safety net for when life throws you and your business a curveball.
Here are five reasons to get income protection:
Your Bills Don’t Stop When You Do
Accidents can happen at any time and illnesses both mild and serious can materialize out of nowhere. Your health insurance may cover the medical bills in the event of illness or injury, but how will you pay your bills if you need to take time off work for an extended period of time? Disability insurance helps you do this by offering insurance for your income. There are specific steps small business owners can take when signing up for disability insurance, such as having several years of proof of income at hand.
Beyond your own bills, you’ll also likely be responsible for the salaries of your employees and the costs of daily operations. Business overhead expense (BOE) disability insurance is a separate form of insurance that covers these needs. It’s typically a short-term form of insurance, lasting up to two years. Policygenius explains the essentials on how this works well as a complementary form of protection to long-term disability insurance.
Loss of Income Doesn’t Just Arise from Illness or Injury
You may experience a breach of either physical or digital property, such as a cyber security threat or a traditional break-in scenario. Or your physical location may suffer damages from a natural disaster such as a fire or flood. Business income insurance helps to offer protection for these types of challenges.
Income Protection Is Affordable
Long-term disability insurance generally costs between one and three percent of your annual salary. When you break this down into a weekly premium, it’s may just be the cost of one business lunch a week. Yet the benefits, in terms of keeping your life on track should a challenge strike, are far-reaching.
It Allows You to Focus on Recovery
The key issue with income protection is that if you do become sick, injured, or find yourself dealing with a physical or digital challenge, getting back on track is that much easier when you’re able to pay all your bills during the recovery process. You can focus your time and energy on bouncing back from the challenge.
By protecting your income, you’ll be able to rest in the knowledge that operations will be able to continue and your own bills will be paid, even if you need to take some time out. It’ll give you peace of mind and help you grow a more resilient and adaptive business.