If you own a plumbing company in Houma or anywhere across South Louisiana, your business runs on one thing more than any other: your ability to show up and do the work. The trucks, the tools, the crew, the contracts — all of it depends on the owner being able-bodied. So here is the question most owners never stop to ask: what happens to your income, and your business, if an injury or illness keeps you off the job for months?
In my experience, that gap is the most expensive one in a tradesman’s entire financial picture. The good news is it’s a risk you can transfer away.
The risk owners overlook
According to the Council for Disability Awareness, more than one in four working adults will experience a disability lasting 90 days or longer during their career — and the majority are caused by illness, not accidents. But for a trade built on your back, your knees, and working in tight spaces, the physical stakes are much higher. You insure your trucks. You insure your building. The engine that pays for all of it — your income — is the piece most owners leave unprotected.
The two words that matter most: “own-occupation”
When you file a disability claim, the definition in your policy decides whether you get paid. True own-occupation coverage pays your benefit if you can no longer perform the duties of your occupation — running and working a plumbing business — even if you could do some other kind of work. A weaker “any-occupation” definition only pays if you can’t do any job you’re reasonably suited for. For a trade built on hands, knees, and physical stamina, that difference is everything. Own-occupation costs a little more. It is worth it.
Why an owner needs more than a basic policy
Most off-the-shelf coverage replaces base income only and caps out well below what a successful owner actually earns. It ignores the profit distributions and the seasonal swings that make up a real plumbing business’s income. Group coverage, when it’s even available to a small trades company, is usually thin and taxable. An individual own-occupation policy, funded with after-tax dollars, pays a benefit that is generally tax-free — so more of it reaches your family.
Don’t forget the business itself
Personal income protection keeps the lights on at home. But who covers the rent, the truck payments, the insurance, and the office salaries while you recover? That’s what Business Overhead Expense coverage is built for — it reimburses the fixed costs of running your company during a disability, so the business is still standing when you’re ready to come back. For an owner, the two policies work together.
What to look for
When you compare coverage, ask six questions:
- Is the definition true own-occupation?
- What’s the elimination period before benefits begin?
- How long does the benefit last?
- How does the monthly benefit compare to your real income?
- Is there a future-increase option so coverage grows as your business grows?
- Is Business Overhead Expense included or available alongside it?
A CFP® and ChFC® who works with skilled-trades owners will walk you through each one in plain English.
Let’s talk it through
I’m Kraig Strom, CFP®, ChFC® — 28 years of experience, now serving the families and business owners of Houma and Terrebonne Parish. If you own a plumbing company and you’ve never had your income protection reviewed by someone who understands the trade, let’s have a no-pressure conversation. Call 985-303-2219, email kraig@kraigstrom.com, or visit kraigstrom.com.
This article is for educational purposes only and is not individualized advice. Disability insurance contracts and definitions vary by carrier and state. Any strategy should be reviewed with a qualified professional in your state.
