Disability Insurance for Small Business

Protect Your Income—and Keep Business Running Smoothly

Unexpected illness or injury can disrupt operations and strain finances, especially if you’re a hands-on owner. With small business disability insurance, you safeguard your income and ensure your business keeps moving forward. Heffernan Insurance Brokers helps entrepreneurs and small teams find the right short-term disability insurance to fit their unique needs.

What Is Disability Insurance?

Disability insurance replaces a portion of your income if you’re unable to work due to a non-work-related illness or injury. Unlike health insurance, which covers medical bills, disability insurance provides income protection so you can cover personal or business expenses while recovering.

The two main types:

• Short Term Disability Insurance – Typically covers several weeks to a few months, but can extend up to a year in some cases.
• Long Term Disability Insurance – Covers extended periods, sometimes until retirement

For small business owners who drive daily operations, disability coverage provides vital financial continuity and peace of mind.

Why Small Businesses Need Disability Insurance

If you—or a key employee—can’t work, how will the business meet its obligations?

Disability insurance for small business owners helps:

• Replace lost income during recovery
• Support business continuity
• Retain and protect valuable employees
• Enhance your benefits package and workplace culture

Whether you’re self-employed or managing a team, disability insurance helps protect both people and profits.

What Does Disability Insurance Cover?

Short-term disability insurance for small business typically covers:

• Non-work-related injuries or illnesses (e.g., surgery, severe illness)
• Recovery from childbirth or pregnancy complications
• Musculoskeletal issues, such as back or joint injuries
• Mental health conditions requiring time away from work

Important note: Workers’ compensation covers work-related injuries; disability insurance is for non-work-related injury or illness.

Short Term Disability Insurance for Small Business

Short-term disability (STD) policies usually cover 3 to 6 months and replace 50% to 70% of income, depending on your plan. It’s ideal for:

• Sole proprietors and solo entrepreneurs
• Partnerships and small LLCs
• Businesses with 2–50 employees

Offering small business short-term disability insurance helps attract and retain top talent while providing crucial protection for your income.

How Much Does Disability Insurance Cost?

The cost of small business disability insurance varies based on:

• Age, occupation, and salary of the insured
• Length of coverage and benefit amount
• Waiting period before benefits begin
• Number of people covered (owner-only or team plans)

Owner-only disability insurance is often available for a few hundred dollars annually. Group coverage for small teams is competitively priced, especially when bundled with other policies.

At Heffernan, we shop top-rated carriers to find cost-effective, comprehensive coverage that fits your goals.

Owner-Only vs. Group Disability Insurance

Whether you’re a solo operator or managing a small team, we tailor disability insurance to fit your structure.

Owner-only policies offer income protection for freelancers, consultants, and independent contractors.

Team coverage gives employees valuable income protection and can help with:

• Employee retention and satisfaction
• Compliance in states with mandated disability programs (e.g., CA, NY, NJ, RI)
• Enhancing your employee benefits package

Need help navigating your options? Let’s customize a disability solution that supports your business now and as it grows.

Combine Disability Insurance with Other Key Coverage

Short-term disability insurance works best when paired with other essential business protections. Heffernan builds custom packages that may include:

• Workers’ Compensation Insurance – For job-related injuries
• General Liability Insurance – For third-party claims
• Business Interruption Coverage – To cover lost revenue
• Key Person Insurance – If a crucial employee is sidelined

Together, these policies form a strong safety net for your people and operations.