Disability
insurance for your partners
Author: Ivon
T. Hughes
Disability
insurance is designed to protect business owners and working professionals
when they become disabled and unable to perform their necessary duties at
work. These events can be tragic, and without proper business disability
insurance coverage, you and possibly the partnership, cannot continue to
function. Disability insurance will provide income continuation for you and
your business partners. Not enough people purchase disability insurance,
especially considering these alarming statistics:
· On average, about 220 disabling injuries occur every hour during
the year.
· A disabling injury occurs every eight seconds at work.
· Disabilities affect one-fifth of Canadians and Americans.
Given this prevalence of disabling injuries and illnesses in the workplace
today, it is a wonder that very few business owners and partners don't purchase
business disability insurance to cover them in the event of their own or
a partners disability.
Disability
insurance is now included in partnership agreements, along with life insurance.
With life insurance, the way forward is pretty clear if the partner dies
in the incident. Disability insurance however, is very necessary if he or
she does not die. How will the disabled partner cope with his or her own
expenses is just one question. If there has been no provision personally
made by this partner, is the firm morally or personally obliged to provide
support? Again as the partner is no longer contributing to the profit, is
he or she entitled to the agreed annual share?
Disability
insurance is owned by less than 15% of all workers. And how many partnerships
are there without any kind of disability coverage? It will only take one
partners' disability to perhaps bring down a whole business. The cost of
providing a living income to a partner who will perhaps never return to the
firm, can ruin that firm unless a provision for disability insurance has
been made. A review of your partnership agreement is well warranted.
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Ivon T. Hughes, The Hughes Trustco Group Ltd.
Online Insurance Broker - Get a FREE Quote TODAY!
Tel: (514) 842-9001 Email: [email protected]
Web: http://www.trustco.ca
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