Around 3 am on a Monday morning the phone rings. It’s the fire department and there has been a fire at your office. The office has not been destroyed but there is damage. Damage that will take weeks to repair.
The sun is starting to rise, the air is crisp and you know spring is just around the corner. Its 7:15am and you are doing your daily run. You’ve pulled the hill and now you are running the last flat leg home. As you spring to the finish, you stumble on the uneven sidewalk and you fall forward. You are on the ground, only minor bumps and bruises
Except for the two broken wrists you got from trying to break your fall.
And you still must meet payroll, rent, utilities, insurance, etc. and the bills just keep coming in….
What you should know about:
Business Overhead Expense Insurance
- Business Overheard Expense (BOE) insurance is an insurance contract designed to help business owners meet monthly business overhead expenses during a disability. If you were to become totally disabled based on the definitions in the contract, the insurer would pay the approved expenses your business may incur while you are unable to work.
- In order to provide you with some peace of mind, BOE contracts provide short- term benefits to help you keep the business open long enough to recover or make decisions about the business if you are unable to return.
- Since BOE premiums are tax deductible to the business, any benefits paid to the business upon your disability would be taxable. However, since you are then taking corresponding deductions for the expenses you are paying with the benefits, it becomes a wash to your company and you experience no net cost.
- Business overhead expense insurance works great with more than one owner. The insurance contract you apply for will cover only those expenses for which you are responsible. For example, if you have a business partner and you are responsible for 50% of all expenses, a BOE insurance contract would cover 50% of all expenses up to your maximum amount.