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Business Resilience · Authority Guide

Business Owner Disability Planning

When the owner is disabled, the business often collapses without specific coverage. Business overhead expense + disability buy-out are the two key products.

In this guide

  1. 1 · Executive summary
  2. 2 · Key takeaways
  3. 3 · Key strategies
  4. 4 · Pro-tips checklist
  5. 5 · FAQ
  6. 6 · Related guides & tools

Executive summary

When the owner is disabled, the business often collapses without specific coverage. Business overhead expense + disability buy-out are the two key products.

  • BOE: pays fixed expenses during disability
  • Buy-out: funds partner purchase of disabled owner's share
  • Individual LTD covers personal income

Key takeaways

  • BOE: pays fixed expenses during disability
  • Buy-out: funds partner purchase of disabled owner's share
  • Individual LTD covers personal income
  • Coordinate all three

Key strategies

  1. Strategy 1

    BOE: pays fixed expenses during disability

  2. Strategy 2

    Buy-out: funds partner purchase of disabled owner's share

  3. Strategy 3

    Individual LTD covers personal income

  4. Strategy 4

    Coordinate all three

Pro-tips checklist

  • Underwrite all three at the same time
  • Update with valuation changes

FAQ

What's business overhead expense insurance?

Covers rent, payroll, utilities while the owner is disabled. Up to 24 months typically.