Small Business Insurance

As society develops at a faster rate, more and more people are able to avail of the opportunity of being able to financially educate themselves; more people have moved up from being an employee to being a businessman. Today, information as opposed to money is the currency; financing options have become simpler and more accessible to the masses which allows for the rise of more and more people venturing into SMEs or Small and Medium Enterprise which was not very popular twenty years ago.

There are several factors that determine if a company falls under SME, but the most common definition that is used is on the size of the work force you command. Although it varies from country to country, basically a small business is classified as one that has in its employ fifty or less employees. While a medium enterprise is one that has less than 500 employees.

Although SMEs provide for more financial security as well as financial freedom than employment, it is an undeniable fact that it also has its own share of risks. Therefore, it is essential for SME owners to invest in a Small Business Insurance. Small Business Insurance is a broad topic that would cover various kinds of insurance, including business liability, business property as well as errors and omissions insurance. However, for this article, we will be focusing on one of the most important aspects of Small Business Insurance, and this is the one that directly protects you—the small business owner.

The Disability Management Sourcebook claims that severe disabilities have increased 400 percent over the past 25 years from the age of 17 to 44. Before the age 65, one in seven people will become disabled for five years or more. These findings thus call for the need to invest in Small Business Disability Insurance. So what exactly is Small Business Disability Insurance you ask?

According to about.com disability insurance will replace your income in the event of an accident or illness. Here are some things you have to know about disability insurance.

Peace of Mind

Acquiring disability insurance is like buying you, the business owner some peace of mind, allowing you to focus on more productive things, rather than just constantly being afraid of the risks of daily living.

You are Not Covered 100%

No insurance company offers 100% income coverage. Insurance companies don’t cover your full income because they want to provide incentive for you to go back to work, or else you would just be living of the coverage, which is not good business for the insurance companies. According to about.com a typical coverage is 50-60% of your gross income, while the bulk of disability policies cover anywhere from 40% to 80% of your income depending on how much you're willing to pay.

The Definition of Disability

Each insurance provider has its own definition of what disability means. According to about.com a disability policy could define disability as applied to your specific occupation or to any occupation. If you have skills transferable to another job and you are unable to perform your specific work some policies will not consider you disabled.

The Power of the Internet

Acquiring disability insurance for yourself used to be difficult. Not only will you be choosing from various insurance companies, you also have to go through choosing what combination of benefits they offer versus the cost of the insurance. However with the internet, learning more about disability insurance, as well as where you can find one that is fit for you is just a click away. Some websites provide assistance in comparing and choosing insurance policies that cater to your specific needs. 

Disability Insurance is one of the single most important, and yet neglected type of Small Business Insurance which when you avail, does not only protect you, but also your loved ones as well as your business.