Business overhead

What is Business Overhead Expense Insurance?

Business overhead expense insurance is a type of disability insurance that pays for the fixed monthly expenses of a business if the owner becomes disabled. This can include rent, utilities, salaries, and other essential costs. BOE insurance can help keep a business afloat during a difficult time, giving the owner time to recover and return to work.

Who Needs Business Overhead Expense Insurance?

Business overhead expense insurance is most important for businesses that rely on the owner’s presence to generate income. This includes businesses such as doctors’ offices, law firms, and accounting firms. BOE insurance can also be helpful for businesses with a small number of employees, as it can help cover the costs of paying those employees if the owner is unable to work.

What Expenses Are Covered by Business Overhead Expense Insurance?

The specific expenses covered by BOE insurance vary from policy to policy, but some common coverages include:

  • Rent
  • Utilities
  • Salaries
  • Payroll taxes
  • Equipment rental or lease payments
  • Insurance premiums
  • Professional fees
  • Marketing expenses
  • Dues and subscriptions

How Does Business Overhead Expense Insurance Work?

When a business owner becomes disabled, they will need to file a claim with their BOE insurance company. The insurance company will then review the claim and determine if it is covered. If the claim is approved, the insurance company will start paying the covered expenses.

How Much Does Business Overhead Expense Insurance Cost?

The cost of BOE insurance / varies depending on a number of factors, including the type of business, the owner’s age and health, and the amount of coverage desired. However, BOE insurance is typically more affordable than other types of disability insurance, such as individual disability insurance.

Is Business Overhead Expense Insurance Right for My Business?

If you are a business owner who relies on your own presence to generate income, then BOE insurance may be a good option for you. BOE insurance can help keep your business afloat if you become disabled, giving you time to recover and return to work.

To learn more about business overhead expense insurance, you can talk to a financial advisor or insurance agent. They can help you assess your needs and find the right policy for your business.

Here are some additional things to keep in mind when considering business overhead expense insurance:

  • The elimination period is the time period between the start of your disability and when your benefits start being paid.
  • The benefit period is the length of time that your benefits will be paid.
  • You may be able to add riders to your policy to increase your coverage or add additional benefits.

It is important to carefully read the terms and conditions of your policy before you purchase it. This will help you understand what is covered and what is not.