What Is Business Overhead Expense Disability Insurance?
Business overhead expense disability insurance, or BOE disability insurance, is disability insurance for your business (rather than for you personally). Therefore, it is specifically for business owners. This is often necessary since individual disability insurance does not cover loss of profit related directly to your business if you are unable to work due to injury or illness. The policy payout can be used to cover day-to-day expenses until you are able to return to normal work activity. Vector Financial Group offers brokerage and financial planning services to assist businesses with their BOE disability insurance needs.
What Business Overhead Expenses Are Covered?
Business overhead expense disability insurance usually covers “usual and customary costs.” Financial records are usually provided upon starting your policy and are used for underwriting purposes. The covered expenses may include:
- Office expenses
- Employee wages
- Real estate costs
- Insurance costs
- Debt Payments
- Licensing fees
BOE coverage is intended to help you continue covering the costs associated with daily operations for your business and is not intended for costs that are not typical for daily operations, although every policy may look different.
How Long Does BOE Coverage Last?
The payments from your policy end when you are able to return to work or at the time you exceed your policy limits. Policies can be personalized to include coverage for up to 12, 18, or 24 months; some insurers may offer coverage options for as many as 30 months. The longer your benefits period, the more you can expect to pay in monthly premiums.
Who Should Consider Business Overhead Expense Disability Insurance?
BOE disability insurance mostly covers small to mid-sized businesses where one person is primarily in control of the daily operations and long-term decision-making. For example, the main lawyer (and owner) of a local law firm may benefit from BOE disability insurance. Large corporations that have multiple high-level executives and decision-makers may have less of a need for BOE insurance (although they can benefit from a policy as well).
If your business is largely reliant on your availability to generate a profit, and if your business could suffer a significant loss of value while you are away due to injury or illness, then you should strongly consider an investment into business overhead expense disability insurance. Vector Financial Group can assist with determining your policy needs and goals and can help find you the right carrier, as well as ensure the optimal personalization of your policy.
Interested In Learning More About BOE Coverage?
Vector Financial Group can assist you with your business overhead expense disability insurance needs. Through our financial advisory services and brokerage services, we can help ensure you get the disability insurance that is right for your business needs. So, why wait? Contact us today to get started.