What happens when you call in sick... but you own the business?

One morning, you wake up feeling under the weather and realise you’re coming down with the flu. For most people, this would be the point where they would get in contact with their employer to let them know that they’re not coming into work – but what happens if you’re the employer?

Unlike employees, small business owners don’t tend to be able to benefit from employer sick pay, which means your income may stop when your work stops – but you’ll still have ongoing personal bills and business expenses, which means that, eventually, your clients and projects may be affected. But luckily, there are some steps you can take to make sure your business doesn’t suffer while you’re away from work.

You may think that you’re too young and healthy to need a back-up plan, but the reality is that most people don’t expect to get ill or injured. So even if you’re in good shape and you take care of yourself, there’s always a possibility that you might have to stop working for a while.

If you’re a sole trader without any employees, your income will stop when you’re not working. On the plus side, you won’t have to pay anyone else’s wages, but unfortunately, you’ll still have business expenses and personal bills. As for small business owners with employees, you’ll still need to pay your staff’s wages on top of everything else.

You may have savings that you can use to pay any expenses or bills while you’re not working, so this can keep you going in the interim. You may also be able to count on family support if you’re needing help to pay bills or expenses. But what if you have no savings, and can’t or don’t want to approach family or friends for help? That’s where income protection insurance comes in.

For sole traders and small business owners, income protection can provide a valuable financial safety net if illness or injury prevents you from working. Unlike employees, who may have access to company sick pay, self-employed professionals like freelancers and tradesmen often rely on their income.

Income protection insurance can help to replace a portion of lost earnings, helping business owners to continue covering essential expenses such as mortgage payments, household bills, employee wages, rent, and other overheads while they recover. With the right cover in place, sole traders and business owners can focus on their health and wellbeing without the added stress of worrying about how they'll meet their financial obligations.

The information contained in this article is for general information purposes only. It does not constitute legal or other professional advice and cannot be relied upon as such. Should you have any queries, we recommend that you consult the appropriate professional adviser.

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