Providing Disability Benefits: Washington State Small Business Owners Guide

When it comes to providing disability benefits, Washington state business owners need to know all of their options. Disability benefits policies can be unchartered waters for most business owners, so we’ve compiled a list of tips from the Insurance Commissioner to ensure you’re getting the best policy for your business.

Define Disability:  A disability policy can define disability as applied to your specific occupation or to any occupation. Carefully review if you are covered for any or all occupations as well as the extent of coverage.

Add COLA: A cost of living adjustment (COLA) option will help your plan stay current with rising inflation.

Check Associations: If you're a professional you might want to look to your industry's association for group plans.

Determine Disability Type: Not all disabilities will be covered under a policy for disability benefits. Washington state business should review all of the components of their policy to know what disabilities will be covered.

Guaranteed Insurability:  If you want to add more insurance in the future without more medical qualifying, the guaranteed insurability option is best for you.

Non-cancelable Policy: If you want fixed premiums and benefits consider a non-cancelable policy.

Look at Financial Ratings: Before you make the final decision in selecting disability insurance, review the carriers.

Play the Waiting Game: Increasing the waiting period or elimination period of the disability payout can result in lower disability insurance costs.

Review Existing Policies: Review your life and mortgage insurance policies to explore the cost of adding a disability rider on the policy. A waiver of premium rider can help reduce your expenses in the event of a disability.

Business Overhead Policy: A business overhead expense (BOE) plan can be a welcomed addition to policy holders who not only want income covered but overhead such as: payroll, benefits, rent, and utilities as well.

Find an Agent or Broker: The business of insurance is complex and constantly changing. When it comes to providing disability benefits, Washington state small business owners are encouraged to come to Bell-Anderson and inquiring about your options. It’s important to have a knowledgeable insurance agent that you can trust!