You are reorganizing the top shelf of a garage system. The ladder slips. You shatter your tibia. You are self-employed, so you have no paid sick leave. You are looking at 4 months in a cast, unable to drive or climb. Your health insurance pays the hospital, but who pays your rent?
Key Takeaways
- GL covers THEM, not YOU: Your General Liability policy pays if you fall on the client. It pays $0 if you hurt yourself.
- Disability Insurance is Income Protection: You need “Short Term Disability” or “Accident Insurance.” This pays you cash (e.g., $3,000/month) while you recover.
- Business Overhead Expense (BOE): This specific policy pays your business bills (software subscriptions, insurance premiums, storage unit rent) while you are down, separate from your personal income.
- Workers Comp for Owners: In some states, owners can “opt-in” to Workers Comp. It covers medical + lost wages.
The “Why” (The Trap): The Solo-Preneur Gap
I hear this constantly: “I have insurance!”
Yes, you have liability insurance. That protects your assets from lawsuits. It does not protect your body or your income flow.
Unless you have a Disability Income policy, a broken leg means 100% loss of revenue for 12 weeks. In 2026, with average rents at $2,800, that is a career-ending event.
The Investigation: Getting Paid to Heal
I quoted three income-protection options for a 35-year-old organizer.
1. Aflac (Accident Policy)
- My Analysis: Pays cash for specific injuries (e.g., $2,000 for a broken leg).
- Pros: Fast payout.
- Cons: One-time check. Doesn’t replace monthly income long-term.
2. State Farm (Short Term Disability)
- My Analysis: Replaces ~60% of your declared income.
- The Catch: “Waiting Period” (Elimination Period). You usually have to wait 14-30 days before payments start.
3. Workers Comp (Owner Opt-In)
- My Analysis: Expensive (~$100/mo) but covers 100% of medical bills + wage replacement with no deductible.
- Verdict: Best comprehensive coverage if you do physical labor.
Comparison Table: Income Protection
| Policy | Covers Medical Bills? | Replaces Income? | Cost (Est.) |
| Health Insurance | Yes | No | Variable |
| General Liability | No | No | N/A |
| Disability Ins. | No | Yes (Monthly) | 40−40− 80/mo |
| Accident Policy | No | Yes (Lump Sum) | $20/mo |
[IMAGE: Chart showing the ‘Income Gap’ during a 3-month recovery period without disability insurance]
Step-by-Step Action Plan
- Check Your Emergency Fund: Can you survive 3 months with $0 income?
- Buy Disability Insurance: Do it while you are healthy. Once you are hurt, it’s too late.
- Hire a Subcontractor: If you have a big job booked, hire a peer to fulfill it. You take a cut (15% referral), they do the work. Keep the client, save the revenue.
- Update Contract: Include a “Force Majeure” or “Medical Incapacity” clause allowing you to reschedule or cancel without penalty in case of injury.
FAQ Section
Does my auto insurance cover this if I brought the ladder in my car?
No. Once the ladder is out of the car, auto coverage ends.
Can I sue the homeowner?
Only if their negligence caused the fall (e.g., a rotten floorboard). If you just slipped, you can’t sue them.
Is Disability insurance tax deductible?
If you pay with after-tax dollars, the benefits are tax-free. If you deduct the premiums, the benefits are taxed. Consult a CPA.