What it is
A Business Overhead Expense (BOE) policy pays overhead expenses if an insured business owner or employee becomes disabled. The policy is typically short-term, from 12 to 24 months, and is designed to keep the business running until the insured recovers from a disability.
BOE policies typically cover rent, interest payments on some types of debt, utilities, salaries, office equipment expenses and maintenance, both payroll and property taxes, professional membership dues and subscriptions, accounting fees and insurance premiums for employees. In some cases, BOE policies also cover the salary on any temps hired to do the job of the disabled person.
BOE policies typically do not cover income taxes or the cost of inventory.
How to explain it
Stop and think. How long could your business sustain itself if you were unable to work? For many small business owners, the answer is “not long.” That’s why BOE disability insurance is a must for anyone who owns a small business or whose business relies on a few revenue producers. In the event of an unexpected injury or illness, a BOE policy can be the difference between sustaining an operating business and sliding into bankruptcy.
Your small business is the culmination of your hopes, dreams and countless hours of hard work. You may even aspire to pass your business on to future generations. Don’t let your dream deteriorate due to an unexpected disability. Be ready for anything with affordable BOE protection.
When to offer it
Offer Business Overhead Expense Disability Insurance to any prospect who owns a small business. BOE should be offered along with individual disability insurance to maximize your client’s paycheck protection package.