When disability strikes, most business owners want time in order to assess the likely duration and impact of the disability, before making business liquidation decisions. Without advance planning, however, even a short-term disability can result in a forced business liquidation. A Short-Term Disability... | The Situation | Possible Insurance Solutions | If a business owner wants to keep the business open during a shorter-term disability and avoid a forced liquidation, funds are needed:- to pay business operating expenses during the disability; and
- to continue an income to the owner.
| If a business owner wants to keep the business open during a shorter-term disability and avoid a forced liquidation, funds are needed:- Business overhead expense insurance can be used to reimburse the business owner for business expenses during periods of shorter-term disability.
- Disability income insurancecan be used to replace business income lost while the owner is sick or hurt and unable to work.
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A Longer-Term Disability... | The Situation | Possible Insurance Solutions | | With a longer-term disability, the owner needs time to liquidate the business in an orderly manner. Without sufficient income, however, the business owner may be forced to liquidate both business and personal assets in a disadvantageous manner. | Disability income insurancecan be used to replace the income previously generated by the business, giving the owner the time necessary to execute an orderly business liquidation. |
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