As a self-employed worker or small business owner, you don't have an employer's group benefits: no group disability insurance, no employer-provided life insurance. Your income depends on your ability to work — and that is exactly what needs protecting.
Why entrepreneurs have unique needs
- No group coverage: you have to put everything in place yourself.
- Variable income: a disability can stop your income overnight.
- Business debts: loans, lines of credit and leases often signed personally.
- Partners and employees: a death or disability can destabilize the whole business.
The essential protections
- Disability insurance: it replaces a portion of your income if you can no longer work. For a self-employed person, it is often the most important protection.
- Critical illness insurance: a lump-sum benefit to cover costs and keep the business afloat during recovery.
- Life insurance: to pay off debts, buy out a deceased partner's shares and protect your family.
- Buy-sell agreement between shareholders: funded by life insurance, it lets surviving partners buy out shares without a liquidity crisis.
A few tips
Review your coverage at every stage of the business: hiring employees, a new partner, borrowing, growth. And check whether your insurance premiums can be deductible or structured in a tax-efficient way — the rules differ depending on your business structure. Personalized guidance helps build a protection plan that is consistent with your business goals.
Questions about your situation?
Book a free, no-obligation consultation for personalized answers.
Book a consultationFrequently asked questions
Yes. Insurers offer coverage designed for the self-employed, with options suited to variable income. Pricing depends on your occupation and health.
The rules depend on the structure (sole proprietorship, corporation) and the purpose of the coverage. Consult an accountant or tax specialist for your specific situation.
It is an agreement that governs the buyout of a partner's shares in the event of death or disability. Life insurance often funds this buyout, avoiding the need for survivors to draw on business liquidity.