Small business owners make up roughly 44% of U.S. economic production, yet a LIMRA study found only 18% of them carry individual disability insurance — and half of those are using it only to protect partners or stockholders, not themselves. That leaves the vast majority of business owners with no personal income protection at all. Here’s how to open that conversation.
Key takeaways
- Business owners are approachable, statistically motivated to return to work, and largely unprotected — a strong DI fit.
- Most advisors simply aren’t having this conversation with business-owner clients, leaving the market wide open.
- The sale is about helping owners see their own vulnerability, not about pitching product features.
Small business owners make up roughly 44% of U.S. economic production, yet only 18% carry individual disability insurance — and half of those are only protecting partners, not themselves.
Why this market is worth your time
Business owners make a particularly good fit for individual disability income insurance. They’re approachable, typically unprotected by workers’ compensation, and viewed favorably by DI carriers because owners are statistically more likely to return to work to keep their business running. There’s also a high probability that no one else is having this conversation with your business-owner clients — most advisors simply aren’t raising it.
The key to the conversation
The sale isn’t about product features — it’s about helping owners see their own vulnerability. Some business owners won’t want to engage with that, and it’s not worth spending a lot of time on the ones who don’t. But many will, once they understand what’s actually at risk, and as their advisor, you owe it to them to at least bring the need to the table.
Facts worth sharing with clients
Most people underestimate their real risk of disability. A few facts help make the case concrete: injuries, despite being the most commonly assumed cause, account for less than 10% of disability claims. Diseases of the musculoskeletal system — arthritis, tendonitis, carpal tunnel, and lupus among them — are consistently the leading cause of new disability claims. Cancer is the second leading cause.
Bringing this to your clients
If you have business-owner clients relying solely on a group LTD plan, or with no personal disability coverage at all, that’s a conversation worth starting today. We have marketing support and case-design help available if you want to bring this market into your practice.
Frequently asked questions
Why do so few business owners carry individual disability insurance?
Most advisors simply aren’t raising the topic with them. A LIMRA study found only 18% of business owners carry individual disability coverage, and half of those are using it to protect business partners rather than their own income.
What actually causes most long-term disability claims?
Contrary to common assumption, injuries cause less than 10% of disability claims. Musculoskeletal conditions like arthritis, tendonitis, carpal tunnel, and lupus are the leading cause of new claims, with cancer close behind as the second leading cause.
Reviewed by Tim Fuller on 2026-09-23
Tim Fuller
President, SRS Inc.
Tim leads SRS Inc., a full-service IMO (Independent Marketing Organization) and BGA (Brokerage General Agency) connecting independent financial professionals with life, annuity, disability income, and long-term care solutions from 60+ carrier partners — with the impaired-risk and complex-case expertise to place business other IMOs and BGAs turn away.
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