Business Overhead Expense Insurance

Business Overhead Expense (BOE) insurance reimburses  some business expenses during a business owner's covered disability. This allows the owner and their business to “keep the lights on” so they can keep the business going while they are too sick or hurt to work. The benefit period is usually designed to last for up to 12-24 months. This time period helps the owner "buy time" to either recover and return to the business, OR transition the business management to a replacement or a new owner.

Generally, covered expenses are typically those that are business deductible expenses, similar for federal income-tax purposes, such as premiums for malpractice insurance policies, mortgage/rent, employees’ salaries, utilities, and more. Please consult with a tax advisor and the BOE carrier to determine which expenses are covered.

Insurance brokers and financial professionals can work with their small business owner clients to complete a BOE worksheet to find out what amount of expenses could be at risk. Next, requesting BOE quotes from multiple carriers to compare products. From there, an application and full underwriting would be required by the carrier to determine if the client is eligible for coverage -  both medically and financially. To learn more, feel free to reach out to Grayson Owen at the contact information below.