Business Overhead Expense Disability

Business Overhead Expenses can be a heavy burden for the disabled business owner, coming as the do at a time of disability, with regular living expenses continuing, business expenses continuing, and business income frequently severely interrupted.

Business Overhead Expense Insurance is not a substitute for Personal Disability Income Insurance.

Business Overhead Expense Insurance is needed in addition to Personal Disability Income Insurance so that your Personal Disability Income Insurance is available to pay for other ongoing obligations.

A Business Overhead Expense Insurance policy will, after the Elimination Period selected, pay the Monthly Benefit purchased for up to 12, 18, or 24 months.

Unlike Personal Disability Income, Business Overhead Expense policies pay benefits only when two conditions are present:

  1. Total disability due to injury or sickness, and
  2. Covered Overhead Expenses must be incurred during the disability.

Some of the Eligible Covered Expenses that Qualify for Reimbursement include:

  • Accounting and Legal Expenses
  • Association Dues
  • Automobile Expenses
  • Employee Benefits
  • Employee Salaries (but not your salary)
  • Equipment Depreciation
  • Equipment Lease Payments
  • Insurance Premiums
  • Laundry
  • Loan and Mortgage Interest
  • Rent
  • Taxes
  • Utilities

Ineligible Expenses include:

  • Salaries of any other members of your profession or occupation
  • Repayment of Loan or Mortgage Principal

Tax Deductible

Business Overhead Expense premiums are considered to be a business expense and are fully tax-deductible.

Features to Consider with Business Overhead Expense Insurance

  • Conversion Privilege
  • Guaranteed Insurability (right to increase benefits)
  • Presumptive Total Disability Provision
  • Suspension During Military Service
  • Transplant and Cosmetic Surgery Provisions
  • Waiver of Premium

To request a Business Overhead Expense Proposal please complete our simple Quote Form. We will do the rest.

Business Overhead Expense Quote Request Form

Fields indicated with an asterisk * are required.
Broker Submitting Quote Request
* First Name
* Last Name
* Phone
* Email
* State
Client Information
  State of Residence 
  State of Employment 
  Is the client a smoker? 
  Exact Duties:
  Is the client one of the business owners? 
  If yes, what is the percentage of ownership? 
  Does the client currently have any In-Force Disability Income Coverage? (Individual or group) 
  If yes, please give details (amount and coverage:
  Reported income from previous year: 
  Reported income from two years ago 
  Amount of Benefit Requested: 
  Elimination Period: 
  Benefit Period: 
Broker Supplies
  Need supplies? 
  Supplies requested:
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