As a self-employed professional, your income depends entirely on your ability to work. Unlike traditional employees, you don’t have the safety net of employer-sponsored disability benefits. If an illness or injury prevents you from working, your income can stop immediately—while business expenses and personal bills continue to pile up. That’s why Disability Insurance for the Self-Employed is one of the most important protections you can secure.

Why Disability Insurance Matters for Entrepreneurs

Imagine a consultant who earns $120,000 annually running their own practice. If they suffer a back injury and can’t work for six months, that’s $60,000 of lost income—not counting business overhead. Without proper coverage, savings can drain quickly, and clients may move on. Disability insurance ensures that if you can’t work due to illness or accident, you still receive a monthly benefit to replace lost earnings. This allows you to keep your household and business afloat during recovery.

Protect Your Income with Disability Insurance

We’ll compare disability insurance options from 100+ carriers and tailor a plan for your self-employed lifestyle.

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Types of Coverage Available

Self-employed individuals have unique needs, and policies can be customized to match your income and occupation. Common options include:

• Individual Disability Insurance: Provides a monthly benefit if you’re unable to work due to a covered disability. Benefits can be tailored to your earnings and lifestyle.
• Business Overhead Expense (BOE) Insurance: Covers essential business costs like rent, utilities, and employee salaries if you’re unable to work.
• Own-Occupation Coverage: Ensures you receive benefits if you cannot perform your specific occupation, even if you’re able to work in another field.

Case Example: Self-Employed Contractor

Consider Mark, a 42-year-old contractor who earns $95,000 annually. He fell from a ladder and required surgery, leaving him unable to work for nearly a year. Because Mark had purchased a disability policy, he received $4,500 monthly in benefits. This income allowed him to pay both his mortgage and ongoing business expenses, while focusing on recovery. Without coverage, he would have faced financial hardship and risked losing his business entirely.

How Much Coverage Do You Need?

Coverage amounts depend on your current earnings, monthly expenses, and how long you want benefits to last. Many self-employed professionals choose a benefit equal to 60–70% of their income, with a waiting period of 30–90 days and benefit durations lasting up to retirement age. Our advisors at Diversified Insurance Brokers can compare disability policies from 100+ carriers to find the best fit for your unique situation.

Who Is It Best For?

Disability insurance is essential for:

• Freelancers and consultants without employer benefits
• Small business owners with fixed overhead expenses
• Professionals with specialized skills or licenses
• Contractors and tradespeople prone to injury risk