As a small business owner, you may have purchased several insurance policies to stay protected from risks that arise out of your business. You may have taken a professional liability cover, life insurance, or a business owners’ policy, but did you think about what would happen to your business and your employees if a mishap leaves you temporarily disabled?
Who will run the business and take care of the operating costs? To ensure that your business is not affected, you will need to take a small business disability insurance. Here is how you can select the best disability policy for yourself.
Understand what disability means
Not every disability policy covers all types of disabilities. The first thing to do is to understand what the insurance provider means by disability and how it is relevant to your line of work in New Jersey. For example, if there is a risk of certain disabilities in your line of work, you must make sure that the insurance policy covers all that and more. The more number of disability types the policy covers, the better it is for you.
Assess how much disability insurance you would need
How much cover will the disability policy offer? Is it enough to meet your business overheads and your personal expenses? To know the extent of cover you require, assess your current financial standing, your regular business expenses (rent, employee salaries, bills and so on), your debts, your operating costs, and also your cost of living. Disability insurance doesn’t always offer 100 percent income coverage, so you will have to look for one that offers maximum cover. You should also set an emergency fund aside to meet the expenses not covered by your insurance.
Do you need a non-cancelable policy?
A non-cancelable policy is slightly more expensive than other disability policies, but it will give you the option of fixed premiums and a higher coverage. At the same time, avoid overspending on insurance; get the best policy you can afford for maximum benefits.
Add to existing policies
If you want to cut down on costs, do not avoid taking the disability insurance completely. Instead, see if you can add the disability insurance clause to your existing life insurance or mortgage insurance policies to bring down the overall insurance costs.
Seek help of an insurance agent
Do not try to understand the complicated world of insurance all on your own. Talk to your insurance adviser or agent in New Jersey to know your options and choose the insurance policy that offers the maximum benefits at minimum costs.