Business Overhead Expenses - Financial Advisory

Business Overhead Expenses

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Business Overhead Expenses

Business overhead expense insurance is an expense reimbursement policy that covers the fixed monthly overhead expenses required to keep a business viable until the return of the insured owner, after a period of disability. This allows business operations to continue until the insured owner either returns to work or makes a decision regarding the future of the business.

 If your business depends on your ability to generate income to help pay the bills, your absence due to a long- or short-term disability would impact the bottom line.

That’s why we provide business overhead expense insurance. It’s designed to help businesses with owners/partners who actively generate income (such as physicians, lawyers, accountants and engineers) pay ongoing fixed expenses—like salaries, rent, property taxes and utilities—in the event that a partner or owner becomes disabled and is unable to work.

Key Features and Benefits:

  • You may apply for coverage if you are between ages 18 and 60
  • The plan is non-cancelable until you reach age 65. After age 65, it is conditionally renewable, as long as you remain employed full-time (minimum of 30 hours per week) and are responsible for the expenses of maintaining an office or business.
  • Benefits can be paid over a period of time up to 24 months
  • Benefits may start after as few as 15 days of disability
  • Premiums may be tax-deductible as a business expense
  • The ability to increase your coverage at a later date
  • If appropriate, return to work assistance may be provided to support your transition back to work