Business Overhead Expense (BOE) Insurance

What is the Overhead expense (BOE) insurance?

How would you pay your business’s monthly fix expense and how long would your business survive if you get temporary disabled?

Business overhead expense (BOE) insurance is a plan to cover a business for overhead expenses in case a business owner becomes disabled and is unique cause Premium is tax deductible and also benefit has tax advantage for policy owner.

A business overhead expense policy unlike individual disability insurance (up to age 65) pays a benefit of one to two years after a waiting period just to get business back to normal.

There are two conditions make a business to receive benefit from BOE:

  • Disability due to injury or sickness.
  • The expenses covered through the policy will spent on the period of disability.

Which expenses are covered by business overhead expense (BOE) insurance?

Business overhead expense insurance will not cover all expenses. The eligible expenses to be paid are:

  1. employee salaries
  2. employment taxes
  3. employee benefit costs
  4. rental payments for property and equipment
  5. principal and interest on mortgaged business property
  6. utilities
  7. accounting and legal fees
  8. business insurance expenses
  9. interest on business debts
  10. property taxes
  11. general office supplies
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