Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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Written by

Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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Reviewed by Jeffrey Johnson
Managing Editor & Insurance Lawyer

UPDATED: Aug 5, 2012

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The insurance industry has designed special policies to deal with these setbacks associated with small businesses or self-employed individuals. The most popular types of business insurance protection policies include the following options—which may be built into some polices, available as an option with others:

Disability buy-out: if the business is co-owned, both owners active, this option funds a buy-sell agreement in the event of disability by a co-owner.

Business overhead expense (BUE): pays the fixed business bills (rent, taxes, utilities, malpractice insurance, staff salaries, etc.) in the event of your disability.

Key person insurance coverage: reimbursement for the financial loss of a key employee due to sickness or accident.

Recovery benefits: supplements your income after returning to work full time for the percentage of income lost during the period you are reestablishing a customer base.

Not all packages are alike; different insurance companies hawk different premiums for coverage. It is recommended to check with an attorney, experienced in insurance matters, the different contract features and options to protect your livelihood while you’re out on disability.