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Business Overhead Expense Insurance

As a business owner, we sometimes feel invincible: we can do it better that everyone else, faster than everyone else, of course (at least to us) more efficiently than anyone else. Sound familiar? (C’mon, fess up!) The fact is, although we may feel this way, there may be a time that a serious illness or accident will take you out of the office or company unexpectedly for a period of time. This absence leaves a gap in the team, may lead to reduced revenues, or may in fact endanger the existence of our company that we spent years or decades to build.

Business Overhead Expense Insurance is a form of disability insurance specially designed for the business owner. Should the business owner become unable to attend work due to natural or unnatural causes, the insurance will pay to keep the company running, up to the limits of the policy. While an individual disability policy will replace wages, the BOE policy may cover other expenses such as salaries, taxes, rent, utility payments, lease payments, utilities, etc.

The components of the policy closely mirror the individual policy, but in the application process the overhead expense of the business is taken into account in applying for the coverage needed to pay the business expenses in the absence of the business owner. Elimination period, coverage period and amounts of coverage are the main parts of the policy: depending on your industry, state of residence and factors individual to your needs and occupation all may vary from issuing company to company.

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Comment   |  7 years, 4 months ago from Suffern, NY