Have you thought about what would happen to your business if you were sick or injured and could not work? Your employees might be able to keep it running for a while. But you still have your monthly expenses. One way to address this risk is to purchase a type of insurance called Business Overhead Expense (BOE). It can help to keep your business going while you recover.
BOE is usually part of the family of disability income products that an insurance company might offer. An individual disability income policy, the flagship of this family, can replace your income lost due to a disability. But BOE is a separate policy that helps to pay for overhead expenses that the business incurs.
Here are some things to know about business overhead expense:
An insurance agent can help you determine what’s best for your business. Qualification for coverage can depend on a number of factors. These may include number of years in business, type of business and your health status/age.
Business overhead expense insurance can help to keep your business running if you became disabled and could not work. By reimbursing the business for regular monthly expenses, it allows the business to continue operating.