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ex5-1 selena

Selena is a self-employed CPA who owns and operates a small accounting firm without partners and employs a staff of five. If Selena is unable to work, no income is generated—not to the business and not as personal income to Selena, herself. This means ongoing business expenses must be paid using cash on hand or any other liquid resources to which the business and/or Selena has access. Having the funds to pay a substitute accountant to handle the firm's workload is essential. If an accounting practice shuts down—even temporarily, clients must look elsewhere for services. Even if Selena recovers and returns to work, there's no guarantee clients will return after they've established a new relationship with a different accountant. In this situation, Selena is likely to suffer a double loss: loss of income and loss of the business she spent years building. There is no substitute for disability insurance, which can help overcome these problems.