Disability Insurance and Self-Employed Professionals: What You Need to Know

For self-employed professionals, disability insurance is an essential safety net. Unlike traditional employees, entrepreneurs, freelancers, consultants, and small business owners cannot access employer-sponsored disability coverage. This makes individual disability insurance policies critical in protecting income and financial stability if an illness or injury prevents them from working.

At Disability Insurance Law Group, our claims attorneys help self-employed individuals nationwide navigate disability insurance claims and denials. Here’s what you need to know about how to protect your rights when filing a claim.

Why Disability Insurance is Essential for Self-Employed Professionals

If you run your own business or work as a freelancer, an unexpected illness or injury can significantly impact your ability to earn a living.

Without disability insurance, you may have no financial safety net, making it difficult to pay for:

• Rent or mortgage payments.
• Business expenses.
• Health insurance premiums.
• Daily living costs for you and your family.

Unlike traditional employees who may receive short-term disability or long-term disability (LTD) benefits through an employer, self-employed individuals must secure their coverage.

Types of Disability Insurance for Self-Employed Professionals

Understanding the different types of disability insurance policies is essential to ensure you have the right coverage for your needs.

They include:

Individual Long-Term Disability Insurance

• Provides monthly income replacement if you become disabled and can no longer work.
• Typically covers 60–70% of your pre-disability income.
• Policies vary based on elimination periods (waiting time before benefits begin), benefit periods, and policy definitions of disability.

Business Overhead Expense (BOE) Insurance

• Helps cover business expenses (rent, utilities, payroll) if you cannot work due to a disability.
• Essential for small business owners with ongoing overhead costs.
• Benefits usually last one to two years to help keep the business running.

Key Person Disability Insurance

• Designed for businesses that rely on one or more key individuals for operations.
• Pays benefits if a key person, such as the business owner or lead partner, cannot work.

Challenges in Filing a Disability Insurance Claim When Self-Employed

Many self-employed professionals face challenges when filing disability insurance claims, including:

• Proving Loss of Income – Unlike traditional employees with W-2 income, self-employed individuals must provide tax returns, profit/loss statements, and business financial records to establish income.
• Understanding ‘Own Occupation’ vs. ‘Any Occupation’ Policies – Some policies define disability as the inability to perform your specific occupation, while others require proof that you cannot perform any occupation—a much stricter standard.
• Delays and Denials Based on Insufficient Documentation – Insurers often claim a lack of objective medical evidence to deny claims, especially for conditions like chronic pain, fibromyalgia, or mental health disabilities.
• Insurance Company Surveillance and Scrutiny – Insurers may use video or social media monitoring to dispute claims by arguing that they are still working or physically active.

To improve your chances of claim approval, follow these steps:

Provide Strong Financial Documentation

• Tax returns from the past 2-3 years to show pre-disability earnings.
• Profit & Loss statements to illustrate income fluctuations.
• Bank statements or business invoices to demonstrate work history.

Obtain Comprehensive Medical Evidence

• Doctor’s reports detailing your diagnosis, symptoms, and work limitations.
• Functional Capacity Evaluations (FCEs) to objectively measure physical or cognitive impairments.
• Statements from specialists, including neurologists, pain management doctors, and psychiatrists.

Keep a Symptom & Work Activity Journal

• Document how your disability affects daily life and your ability to perform work-related tasks.
• Record fluctuations in symptoms and days when you are entirely unable to work.

 Consult an Experienced Disability Insurance Attorney

• A disability attorney can review your policy, ensure proper claim documentation, and challenge insurance company denials.

How Our Nationwide Attorneys at Disability Insurance Law Group Can Help

At Disability Insurance Law Group, we fight for self-employed professionals nationwide who have been wrongfully denied disability benefits.

Our legal team:

• Review your policy and denial letter to build a strong appeal.
• Works with doctors and financial experts to gather persuasive evidence.
• Challenges lousy faith insurance tactics, including surveillance and claim delays.
• Negotiates with insurers and represents you in appeals or litigation.

If you are a self-employed professional struggling with a disability claim, don’t navigate the process alone. Insurance companies prioritize profits over policyholders, but we are here to fight for your rights.

At Disability Insurance Law Group, we help business owners, freelancers, and independent contractors secure the disability benefits they deserve. Contact our nationwide disability insurance claims attorneys at 954-989-9000 or online for a free consultation.