Protecting your business from an unexpected event is one of the smartest things that you can do. For a few dollars, your business can secure its cash flow in the event of a disability to a key employee, owner, practicing doctor, or executive.
Business Overhead Expense Insurance (BOE):
A practice or business that relies on a small number of people (or one person) to produce revenue is economically vulnerable if one of those individuals becomes disabled. A Business Overhead Expense Insurance policy will help cover the ongoing operating expenses of your practice or business. It ensures that you do not have to use personal assets to pay for business expenses if you become disabled.
If the insured does become disabled, a BOE policy pays a monthly benefit based on business expenses, not anticipated profits. The following are some business overhead expenses that are covered under a BOE policy:
Rent or Mortgage Payments
Employee Salaries and Benefits
Accounting Fees, Legal Fees, and Professional Dues
Malpractice and Other Business Insurance Premiums
Maintenance and Janitorial Services
Interest on Business Debts
Other Fixed Expenses that are Ordinary, Necessary, and Tax Deductible
Business Overhead Expense plans are an effective way to protect a business and maintain cash flow in the event of a disability to one of the partners, key employees, or owners.
Please contact us to discuss your specific needs and how a Business Overhead Expense policy can protect cash flow for you and your business.
Please note, all concepts, strategies, and products mentioned may not be suitable for you or your company. Information provided is not intended to be legal or tax advice. Please consult with your tax and legal advisor for specific tax and legal questions.