Sudden illnesses and injuries can be debilitating, especially if you’re a small business owner. If you unexpectedly get paralyzed for a year or sustain a broken leg for six months, this can have significant repercussions on your life and business. The best approach to pursuing anything is to be prepared at all times, so you’ll want to consider small business disability insurance.

This type of insurance policy will be incredibly helpful if you fall sick or get into an accident. It replaces your income while you’re recovering and unable to work, helping your business stay afloat. Here are five tips for buying the best small business disability insurance:


1: Determine How Much You Need

If you have health insurance for your small business, you probably understand disability insurance’s importance. Although it’s essential to have, it can be expensive. Before you get started, determine how much disability insurance you need and can afford. Take a look at your assets and liabilities to find out how long you can support yourself without income. If possible, make the necessary adjustments for living a disabled lifestyle.

Remember that you can’t purchase 100 percent income coverage for your disability insurance, as insurance companies want you to return to work as soon as you can. The average coverage is about 50-60 percent of your gross income, so prepare accordingly.


2: Review Policy Definition of Disability 

When choosing a disability insurance policy, make sure to compare each insurance provider’s definition with each other. Policies may slightly differ when defining disability, but the nuances can be crucial. For example, a disability policy may define disability regarding your specific occupation. If you have transferable skills that allow you to perform another job, but you can no longer fulfill your particular work, some policies may not consider you disabled.

Additionally, you’ll want to check the policy for the disabilities it covers, as many plans aren’t comprehensive. Ensure that it covers disabilities that are relevant to your job. For example, if you’re a tailor, choose a plan that covers disabilities such as carpal tunnel syndrome.


3: Add a Cost of Living Adjustment (COLA) 

Adding a COLA option to your plan will help it beat rising inflation throughout the years. Once you’ve made a disability claim, it will adjust your benefits each year according to the adjustment you established in the rider. That way, you won’t lose money, allowing you to support yourself while you are recovering.


4: Look for Group Plans in Associations

If you’re working as a professional, you may want to check group plans in your industry’s association. They offer many benefits to members, which often include life and disability insurance. It may help if you review these plans’ costs and details, as they may be more affordable than buying your own insurance.


5: Increase the Waiting Period 

If you play the waiting game by increasing the waiting or elimination period of the disability payout, you’ll have a bigger chance of enjoying lower disability insurance costs. Make sure you review your financial resources to have an accurate estimation of how long you can live off your savings before you start receiving benefits. Remember that the first payment usually comes around 30 days after your waiting period.



It’s essential to anticipate all possible scenarios that can affect the operations of your small business. Buying disability insurance will help you mitigate the expenses and losses in revenue that may occur if you are sick and injured. It’s always best to fully prepare yourself, so use these five tips to find the right insurance plan for your small enterprise.

Abbot Benefits group has provided employee benefits and group health insurance in Houston to small and medium-sized businesses for over 30 years. Our team comprises experts with highly specialized knowledge in dental, vision, life, medical, and disability insurance benefits for businesses with 2 to over 250 employees. Get in touch with us today to see how we can help you!