Question

Many small business owners worry how their business will survive financially if the owner becomes disabled. The policy which best addresses this concern is

A) Life insurance.
B) Disability income insurance.
C) Commercial property insurance.
D) Professional liability insurance.

Answer 1

The best policy for small business owners concerned about financial survival in the event of disability is Disability income insurance. It provides income when the owner is unable to work because of a disability.

Step-by-step explanation:

Many small business owners worry how their business will survive financially if the owner becomes disabled. The policy which best addresses this concern is Disability income insurance. This type of insurance specifically provides the insured with a portion of their income should they become unable to work due to disability. It's distinct from other policies such as life insurance, which pays out upon the insured's death to their beneficiaries, and commercial property insurance, which covers damages to business property. Professional liability insurance protects against claims of negligence or harm due to professional services.