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:
- Total disability due to injury or sickness, and
- 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
- Loan and Mortgage Interest
Ineligible Expenses include:
- Salaries of any other members of your profession or occupation
- Repayment of Loan or Mortgage Principal
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.