Business Overhead Expense Insurance

Ensure your business will continue to operate if you are unable to work due to an accident or illness.

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What is Business Overhead Expense Insurance?

Business Overhead Expense (BOE) Insurance is a specialized form of coverage designed to safeguard the financial stability of a business during periods when the insured owner is unable to work due to disability. This insurance plays a crucial role in maintaining the business's viability by covering essential fixed monthly overhead expenses. It ensures that the business can sustain its operations seamlessly, providing the owner with peace of mind and time to either recover and return to work or to strategize about the future direction of the business.

The scope of BOE Insurance extends to a variety of expenses that are fundamental to the day-to-day operations of a business. These eligible expenses typically include staff salaries, office rent, lease payments, and business-related taxes. Coverage is provided on a reimbursement basis, ensuring that the business can continue to function smoothly without financial strain during the owner's period of disability. This aspect of BOE Insurance is particularly vital for small to medium-sized enterprises where the owner's active participation is integral to the business's success.

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Pay Salaries

Pay salaries to retain valuable employees and keep your business running.

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Pay Expenses

Pay ongoing fixed expenses such as rent, property taxes and utilities.

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Stay Operating

Keeps the business running smoothly during owner's absence.

Get help with your business overhead expense insurance planning.

Speak with a professional advisor who can help.

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BOE Candidates

Ideal Candidates for Business Overhead Expense Insurance:

  • Risk Mitigation for Principal Owner's Disability: This insurance is a helpful tool for businesses that may face significant operational challenges or risk closure if the principal owner(s) become disabled. It acts as a safeguard, ensuring business continuity during such unforeseen circumstances.

  • Continuity of Operational Expenses: It's an essential consideration for businesses with ongoing expenses that persist irrespective of revenue generation. This coverage ensures that fixed costs, such as rent and utilities, are taken care of, maintaining the business's financial health.

  • Professional Practices and Closely Held Businesses: Business Overhead Expense Insurance is particularly beneficial for professionals like physicians, lawyers, and accountants, as well as principal owners of closely held businesses. These businesses often rely heavily on the active involvement of their principal owners, making this insurance a strategic asset for their stability and longevity in the owner's absence.

Get in touch

Talk to an advisor who can understand your situation, answer your questions and help you build an insurance plan appropriate for your business.

Frequently asked questions

Answers to key questions about Business Overhead Expense

Who should consider Business Overhead Expense (BOE) Insurance?

It's ideal for small to medium-sized business owners, especially where the business is highly dependent on the owner's ability to work.

How does Business Overhead Expense (BOE) Insurance differ from personal disability insurance?

While personal disability insurance provides income to the individual, BOE Insurance covers the business's operational expenses during the owner's disability period.

What expenses are typically covered by Business Overhead Expense (BOE) Insurance?

Covered expenses often include rent, utilities, employee salaries, insurance premiums, and loan payments, but exclude the owner's salary.

How is the benefit amount determined in BOE Insurance?

The benefit amount is based on the business's regular monthly overhead expenses and is determined at the policy's inception.

How long do Business Overhead Expense (BOE) Insurance benefits last?

Benefit periods vary but often last for 12 to 24 months, providing a temporary bridge until the owner recovers or the business adjusts.

Still have questions?

Please contact our office and we'll be happy to address any questions you may have.