There once was a cobbler who had a thriving shoe business. Unlike the old cliche- he had nice shoes! So busy was the cobbler that he brought in his favorite son-in-law to help run the business. And, then the worst happened. The cobbler, who had scraped and clawed and sacrificed his way to success, got sick with a debilitating malady that left him unable to put in full day’s work.
But that didn’t really impact business. The cobbler’s son-in-law and their helpers were there keeping the business going while the cobbler drew full pay. This caused stress and strain on the son-in-law and the staff, not only because their patriarch, their champion was compromised, but also too was the cash flow. No monies were available for a replacement for the cobbler to help ease the strain and the drain of the other folks at the shoe shop.
Sadly, within a couple years the cobbler died. The son-in-law assumed the lead position in the shoe store and led it to heights and successes that the cobbler himself wouldn’t have anticipated.
Happily ever after, right? Well, sort of. But the real story is that it wasn’t a cobbler it was my father-in-law, and the shoe store was this agency that I now have owned for the past 17 years. I am scarred by the whole situation to this day. My father-in-law did not have DI, perplexing as that seems. It was a tough time in my life and my organizations life. We persevered and have thrived. But that two year period was taxing on our business because of the drain of the business owner drawing from it with no substantial productivity, not to mention having to watch the deterioration of a loved one.
YES- business owners (and fee or renewal based agents/advisors) can draw full pay from their business if they get sick or hurt and can’t work. But it impacts the organization, often unfairly! Proper income protection planning is an inexpensive to the worst case scenarios that can befall small businesses. Offload the risk to a disability insurance carrier.
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