You put time, energy, money, and heart into building your business. You made tough calls, taken smart risks, and have grown something from the ground up… but what happens if life throws a curveball your way?
Insurance definitely is not the most exciting part of entrepreneurship, but it is essential. It’s about protecting the future you’re working so hard to build for yourself, your family, and your business.
Here’s a clear, no bullsh*t breakdown of the key types of insurance every woman business owner should (at the very least) consider, why each matters, and what they protect .
Disability Insurance: Your Income Safety Net
What it covers: If you become too sick or injured to work, disability insurance replaces a portion of your income.
For business owners (especially solopreneurs) this can be critical. If you are the business, what happens if you can’t work?!
There are two main types:
- Short-term disability – Covers a few months of income while you recover
- Long-term disability – Kicks in after a waiting period and can last for years depending on your policy and the disability
Tip: Look for “own-occupation” coverage, which pays out if you can’t perform your specific job, not just any job.
Add-On: Business Overhead Insurance
What it covers: This type of policy pays for the business fixed expenses, like lease, utilities, payroll, and insurance premiums, if you’re disabled and can’t run things day-to-day.
It’s a crucial lifeline to keep your business afloat while you recover, especially if you’re a solo owner or key decision-maker.
Life Insurance: Protection for the People Who Count on You
What it covers: A death benefit for your loved ones (and/or business partners) if you pass away.
Even if you don’t have kids, life insurance can be critical:
- To protect a spouse or partner who depends on your income
- To pay off business debts or buy out a business partner
- To leave a legacy or fund future goals
Tip: Term life insurance is often the most affordable and practical option for most business owners unless you are looking to get real fancy or want some additional perks embedded in your policy.
Liability Insurance: Protection From Legal and Financial Risks
What it covers: Legal claims, damages, defense costs if your business is sued.
This might include:
- A client accusing you of professional negligence
- A customer injured on your premises
- A former employee filing a claim against your business
Types to know:
- General liability – Basic coverage (slips, falls, etc.)
- Professional liability (E&O) – (Errors & Omissions) For service-based businesses
- Cyber liability – If you collect and/or store client data online
Tip: Even small or home-based businesses need this. Just one lawsuit can kill your business and the right insurance can keep you afloat.
Optional: GAP Insurance for Additional Biz Liability
What it covers: GAP insurance (not to be confused with auto loan GAP coverage) can help cover excess liability or expenses that exceed the limits of your base insurance policy. Think of it as a financial cushion if a claim goes beyond your coverage limits (especially useful in high-risk industries) or as your business grows.
Health Insurance: Don’t Let a Medical Emergency Derail Your Finances
What it covers: Medical care for you, your family, and potentially your team.
If you’re self-employed, you can:
- Buy coverage through the Marketplace (healthcare.gov)
- Join a professional association plan (this can save you a ton of money in premiums)
- Work with a broker to explore private options
If you have employees, explore small-group coverage or a QSEHRA (Qualified Small Employer Health Reimbursement Arrangement) as a tax-advantaged way to reimburse for health expenses.
Tip: Health insurance is a business expense, and premiums may be tax-deductible. I know, it sucks. But don’t skip it!
The Bottom Line: Insurance Is a Foundation, Not an Afterthought
Insurance can’t prevent bad things from happening but it can give you a safety net when they do. One unexpected event doesn’t have to unravel everything you’ve worked for.
It’s not about fear, it’s about freedom. The freedom to run your business with confidence knowing you have the right protections in place based on your needs.
Not Sure What Coverage You Need?
You don’t have to figure it out on your own. I help women business owners build solid financial foundations, insurance included. That said, I do not *sell* insurance any more, so I’m not swayed by commissions that end up added to your premiums. I simply help you research and review policies to make an informed decision. Let’s talk about how to protect your income, your business, and your peace of mind.
Schedule a call today and let’s make sure your future is as protected as it is powerful.
Disclosures:
Divergent Financial Advisory Services, LLC dba as DiFi Advisory, is a Registered Investment Advisor (“RIA”) registered with the state of Oregon. Registration as an investment adviser does not imply a certain level of skill or training, and the content of this communication has not been approved or verified by the United States Securities and Exchange Commission or by any state securities authority.
The information contained in this material is intended to provide general information about Divergent Financial Advisory Services, LLC dba as DiFi Advisory and its services. It is not intended to offer investment advice. Investment advice will only be given after a client engages our services by executing the appropriate investment services agreement. Information regarding investment products and services are provided solely to read about our investment philosophy and our strategies. You should not rely on any information provided on our web site in making investment decisions.
Market data, articles and other content in this material are based on generally-available information and are believed to be reliable. Divergent Financial Advisory Services, LLC dba as DiFi Advisory does not guarantee the accuracy of the information contained in this material.
Divergent Financial Advisory Services, LLC dba as DiFi Advisory will provide all prospective clients with a copy of our current Form ADV, Part 2A (Disclosure Brochure) prior to commencing an advisory relationship. However, at any time, you can view our current Form ADV, Part 2A at adviserinfo.sec.gov. In addition, you can contact us to request a hardcopy.
