Have you protected your most valuable asset?
Every business needs business insurance. Insurance is necessary to protect your
property; the contents of your facility and it also serves to mitigate unknown risk and
unforeseen events. Sadly, we often overlook and neglect the importance of protecting
our ability to earn an income. If an employee or owner is unable to physically contribute
to the operation of their company, their income can end abruptly. Here are a few types
of insurance to consider for both the employees and ownership which help restore
cashflow in the midst of a crisis.
Protecting Employees Ability To Generate An Income
The single most leading cause for bankruptcy in the U.S. is related to medical costs.
Underlying the epidemic is the inability of an individual to generate an income during a
health crisis, thus resulting in uncontrolled debt. Hence the reason we emphasis our
clients to protect their ability to generate revenue while running a business. None of us
are exempt from dealing with life events and sometimes willpower is just not enough to
help you navigate through a physical ailment or an emotional/mental health issue. A
negative impact on your business can slow you down significantly or even cause your
doors to shut all together.
Disability Insurance For Employees
Income Replacement Options
Short-Term Disability
• Short-Term Disability provides income replacement for injuries or illnesses that result in a temporarily losing the ability to work. An employee and executives can receive up to 60% of their regular income (including commissions & bonuses). Typically benefits generally provides coverage for several week up but not exceeding 1 whole year.
Long-Term Disability
Serious illnesses and injuries can cause dramatic changes in health and result in long recovery times plus the loss of the ability to work entirely. Supplemental income may need to be established for several years in some cases.
Maternity Leave Coverage
Another form of short term disability insurance that allows employees to take time off from work to care for a new child and not miss out on income while away from work.
Questions About Disability Insurance?
A Disability insurance policy covers about 60% of your income per month.
Believe it or not, 1 in 4 adults will experience a disability before they reach the age of 67.
Workers comp insurance only covers 5% of all disabling injuries and illnesses. It only covers you when you are at work.
What Is A business overhead expense Policy?
As a business owner, you may not be able to afford missing an extended period of work because of an illness or injury. Even just a few months away may result in your company suffering a significant financial setback. Business overhead expense insurance provides monthly payment to cover everyday operating expenses so your business can continue to operate smoothly in the absence of a key contributor.
Employee Wages
This means payroll, payroll taxes as well as the employer contributions to employee benefits.
Debt
Coverage for debt includes paying for accounting, billing, and collection services. It can also pay the cost of making installment payments on debt your business had prior to your disability.
Real Estate
Among covered business expenses are payments for your office’s rent or mortgage. Associated property taxes typically are also covered.
Office Expenses
Business overhead expense insurance benefits can be used to pay your property and liability insurance premiums as well.
Insurance Premiums
Business overhead expense insurance benefits can be used to pay your property and liability insurance premiums as well.
Consulting Services
Legal consultations and Accounting Services are included in covered expenses.
Disability Buy-Out Insurance
Disability buy out insurance plays a role in a business’s continuation or succession plan. In the event of a stakeholder or partner is no longer able to actively contribute the operation of a company, a buy-out policy is often exercised to relieve them of their ownership in exchange for financial compensation. A buyout will allow the remaining owner or owners to continue operations, receive some compensation for their loss and remove the noncontributing stakeholder from ownership.
Meanwhile, the disabled owner or partner can feel confident he/she will receive a fair market price for their contributions to their business.
Insurance Solutions For Your Business
Cost-Effective Payroll Services For All Businesses
Employers trying to entice workers to remain loyal may want to focus their efforts on providing benefits which are simply too good to surrender. The overall goal is to keep your employee happy and keep them focused on being productive in your company, not someone else’s. You don’t necessarily have to throw more dollars toward benefits. By being creative, you may be able to offer more coverage for a lower cost.
Employee Benefit Options
Health Insurance
Surely you have seen advertisements for affordable health insurance and have been let down. Learn how to structure your health insurance policy to receive a refund for unused benefits, reduce overall costs and increase access to care.
Disability Insurance
Employees and ownership can have peace of mind and financial security knowing they’ll have income during incur a devastating injury or illness. Protect your investment in your business by protecting your ability to generate income. A health crisis can compromise your business and your lifestyle.
Workers Compensation Insurance
Workers' compensation insurance provides income replacement and medical benefits to employees injured on the job. Relieving employers of the liability associated with being sued to to incidences occuring on the job.
Life Insurance
Employers can offer deep dish saving for insurance coverage every family cannot afford to do without. A huge perk for employees. Additionally, these insurances can increase in monetary value as an employee’s tenure increases.
Knowledge is Power
Get informed with insights and resources from NexGen Payroll.
