Many small businesses fail. According to the U.S. Small Business Administration, approximately half of businesses with employees survive at least five years. This means that about half of these businesses fail sometime during the first five years – sometimes within the very first year or two.
With the right insurance coverage, some of these closures might be preventable. Business Overhead Expense (BOE) insurance provides critical protection for many businesses. If the insured becomes disabled, BOE will provide a monthly payout that enables the business to continue operating.
One Big Setback Is All It Takes
Business owners work hard to get their company off the ground. In most situations, their continued work is vital to the survival of the company. So what happens if they get sick or injured? While they’re unable to work, the overhead expenses keep piling up while the income disappears. If it goes on long enough, the business may be forced to close.
BOE insurance can prevent this outcome. BOE policies typically cover a period of 12 to 24 months. The monthly benefit is designed to cover common business overhead expenses, including rent or lease payments, property taxes, employee wages and benefits, utilities, certain insurance premiums and other common expenses that are needed to keep the business in operation.
Some expenses, such as inventory and income tax, are not typically covered. Additionally, it should be understood that BOE is designed to cover operating expenses – it’s not designed to replace profits. Nevertheless, if a business owner experiences illness or injury, a BOE policy might be the only thing that keeps the business from falling into bankruptcy.
A Solution for Many Types of Businesses
A wide range of business types can benefit from BOE insurance. This includes various restaurants and retail stores. It also includes professional offices.
BOE is also important for doctors and dentists. While it’s widely recognized that doctors and dentists need disability insurance to protect their incomes in case they become ill or injured, not everyone realizes how important BOE coverage is.
Many doctors and dentists are also entrepreneurs. They own their own practice, either in full or as a partner. If they become ill or injured, disability insurance will protect their income, but it won’t help keep the business running. This is what BOE is for.
Learn more about how BOE can help doctors, dentists and other business owners. Get the BOE Product Sheet – now available in two versions, one for the doctor/dentist markets and the other for business owners.