Overhead Expense

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Disability Overhead Expense Planning – As a Professional or business owner there is no worse fear than becoming disabled! We all know that ‘Good Luck’ alone does not build a successful business. However ‘Bad Luck’ due to a long term disability could sure end one quickly! Personal income is either drastically reduced or discontinued which is bad enough, but then a disabled business owner must also continue to pay overhead expenses such as employee salaries, rent or mortgage, normal operating expenses and more – which can kill a business. If you were disabled and your business had to continue without you for an indefinite period of time, how would the ongoing expenses of operation be paid? 

You may think that the business will be able to get by in your absence, but that is a humble assumption. Very few businesses can actually continue without interruption during the total disability of an owner. In the case of Professional businesses, only another licensed Professional can continue the practice in order to keep the doors open. What are the alternatives? Going to the bank for a business loan is difficult when business is good, never mind after a Principal or business owner just become disabled.

First, find out what expenses qualify for coverage and how much ‘Disability Overhead Expense’ insurance you need.

The following business overhead expenses are typically covered by a BOE disability policy:

  • Rent
  • Interest payments on outstanding eligible business debts
  • Utilities (heat, water, telephone, electricity, etc.)
  • Non-attorney employees’ salaries and payroll taxes
  • Postage and stationery
  • Equipment maintenance
  • Rental, lease, or depreciation of office equipment
  • Monthly average of taxes on the premises
  • Insurance premiums for Workers’ Compensation, Employee Medical Plans, Employee Taxes, General Liability, Professional Liability/Malpractice
  • Accounting fees
  • Professional memberships and/or subscription dues.

Click here to use our calculator to determine exactly what the monthly cost to keep your doors open for business actually is. Disability Overhead Expense insurance is designed to reimburse a Professional or business owner eligible expenses during a total or partial disability. The business owns the policy, is the beneficiary and pays the premium, which are tax deductible to the business. Having proper Overhead expense coverage allows a business owner to concentrate on getting better during a period of disability without feeling the pressure of having to return to work too early. Most importantly, Overhead expense coverage GUARANTEES that you have a practice or business to return to after your disability has ended!

Protect what you have worked so hard for click here or call our office today to discuss your particular situation!