Business Overhead Insurance

A practice that relies on a small number of people to produce revenue is economically vulnerable if one of those individuals becomes ill or disabled. Business Overhead Expense insurance (BOE) is a great idea for small practices with one or several practitioners.

If you are a doctor, dentist, attorney, CPA, Realtor, or other professional or small business owner, you should consider the benefits of Business Overhead Expense (BOE) insurance. BOE insurance ensures that your practice has the necessary income to stay afloat if you become unable to work for an extended period of time due to an injury or illness.

BOE will cover the ongoing operating expenses of your practice/business and ensure that you do not have to use personal assets to pay for business expenses. BOE pays a monthly benefit to keep your practice afloat while you recover.

The following are some business overhead expenses that are covered by BOE insurance:

  • Rent or Mortgage Payments
  • Employee Salaries and Benefits
  • Utility Bills
  • Property Taxes
  • Accounting Fees, Legal Fees, and Professional Dues
  • Malpractice and Other Business Insurance Premiums
  • Maintenance and Janitorial Services
  • Depreciation
  • Interest on Business Debts
  • Office Supplies
  • Other Fixed Expenses that are Ordinary, Necessary, and Tax Deductible

BOE insurance allows you to keep your practice open, or at least pay for its expenses until you recover. In the case of a long-term disability, it offers you up to two years to make a business decision, such as whether to shut down or liquidate your practice, without worrying about accruing debt from business expenses. As long as premiums for personal disability insurance are paid with after-tax dollars, the benefits are tax-free.

In many cases, the sooner you purchase a BOE policy, the better. Not only will you get lower rates when you are younger and generally in better health, but additional coverage can be purchased later without providing further evidence of medical insurability.

Listen to the Craig James podcast series on Business Overhead Expense Insurance….

Business Overhead Expenses: The Facts – Episode 1

If you are a doctor, dentist, attorney, CPA, Realtor, or other professional or small business owner on Long Island (Nassau County, Suffolk County), call Craig James Financial Services, LLC to learn more about Business Overhead Expense insurance. Call: 631.393.2888 or Toll Free: 877.876.2707

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