Personal Disability Insurance protects your paycheck, while Business Overhead Expense (BOE) Insurance protects your business. It covers fixed costs so your business can stay open if you cannot work due to a disability.
What is Business Overhead Expense (BOE) Insurance?
Business Overhead Expense (BOE) insurance helps business owners cover essential operating costs if they become disabled and unable to work. While disability insurance replaces personal income, BOE insurance covers operating costs so the business can continue to run during recovery. It helps keep the doors open and the business financially stable until the owner can return. BOE insurance can be the difference between a temporary setback and a permanent loss.
What expenses does BOE typically cover?
Business Overhead Expense (BOE) insurance typically covers the ongoing fixed costs of running your business while you’re disabled and unable to work. Exact coverage can vary by carrier, but most BOE policies include:
- Office or commercial rent/lease payments
- Utilities (electricity, phone, internet, water)
- Employee salaries and payroll taxes for non-owner staff
- Equipment leases or rentals
- Office supplies and postage
- Business insurance premiums
- Accounting, bookkeeping, and administrative services
- Interest on business loans (in some policies)
- Property taxes related to the business space
- Professional services needed to keep operations running
Who should consider BOE insurance?
BOE insurance is ideal for business owners with ongoing overhead costs, employees, or fixed expenses that would continue even if they were unable to work. The best time to get BOE insurance is while your business is stable and you are healthy. This ensures you can qualify for coverage before an unexpected illness or injury affects your ability to work.
How long does BOE coverage last if I become disabled?
Most BOE policies provide benefits for a limited period, often 12 to 24 months, designed to bridge the gap while you recover or make decisions about the future of your business.
Can I choose which expenses are covered?
Policies are designed to cover common, eligible business overhead expenses, but coverage can vary by carrier. We help you understand what is included so there are no surprises when selecting a policy.
What discounts are offered to association members?
As an association member, you can typically get a BOE insurance plan with up to a 20% premium discount. If an illness or injury prevents you from working, the plan can pay up to $40,000 per month toward office expenses, helping your business stay open while you recover.
How can I learn more about Business Overhead Expense Insurance?
You can learn more in a no-cost conversation where we review your business, your monthly overhead, and costs you’d need to cover if you couldn’t work.
We’ll help you understand how Business Overhead Expense Insurance works, what expenses it can cover, and how much coverage may make sense for you. From there, we guide you through your options so you can put a plan in place to help protect your business and keep it running during a period of disability. To get started, complete the request-a-quote form, and we’ll follow up with personalized options for your business.
