Business Overhead Insurance

Business Overhead Expense insurance helps protect small practices to produce revenue in the case that an individual becomes ill or disabled and the practice becomes economically vulnerable. 

If you are a doctor, dentist, attorney, CPA, realtor, or other professional or small business owner that plays a vital role in generating revenue, you should consider 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 covers only the ongoing operating expenses (fixed costs) of your practice/business, and notably will not cover potentially lost revenue or your personal salary. Other insurances such as disability insurance would likely be more suited to keeping your personal finances afloat. However, BOE ensures that you do not have to use personal assets to pay for business expenses. Essentially, BOE allows you to keep the lights on as you can recover or restructure your business to operate in your absence. In the case of a long-term disability, most BOE plans offer 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.

Examples of costs 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

 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 at 631.393.2888 to schedule a complimentary consultation or learn more about Business Overhead Expense insurance.