Benefits Of Business Overhead Expense Insurance

If you or a co-owner become disabled and unable to generate income, business overhead expense insurance can help you:

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Running Your Business

Pay salaries to retain valuable employees and keep your business running

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Cover Fixed Expenses

Cover ongoing fixed expenses such as rent, property taxes and utilities

The Right Choice If

  • Your income is needed to pay fixed business expenses
  • You are a physician, lawyer, accountant or principal/owner of a closely held business or practice

Plan Summary

Business Overhead Expense Insurance Plan

  • Ages 18-60 eligible to apply
  • Non-cancellable until age 65 (conditionally renewable after age 65)1
  • Benefit payments are available for 15 or 24 months

  • Benefits can start after only 15 days of disability
  • Premiums may be tax-deductible as a business expense
  • You can increase your coverage at a later date
  • Return to work assistance is available

The information above is a summary only. Please see a sample policy for complete details on terms and conditions, including benefits and exclusions.

Business Overhead Expense Insurance FAQs

Find answers to your questions about business overhead expense insurance.

Business overhead expense insurance is an expense reimbursement policy that covers the fixed monthly overhead expenses required to keep a business running 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.

Business overhead expense insurance is designed for principals of closely held businesses or practices and owners of small businesses. It is most vital for businesses and practices in which the owner's ability to generate income makes the difference between the office being open or closed for business—for example, physicians, lawyers, accountants, engineers and others.

Our business overhead expense policy can be maintained until you (or another insured co-owner) reaches age 65. After age 65, the policy is conditionally renewable while you are employed full-time (minimum of 30 hours per week) and responsible for the expenses of maintaining your office or business. Rates and benefit periods are subject to change after age 65. You may continue the policy for the total disability benefit up to age 75. After age 75, your total disability benefit will be reduced by 50%.

Yes. Benefits will not be paid for disability if the disability is due to:

  • An act or accident of war, whether declared or undeclared;
  • Normal pregnancy or childbirth (however, disabling complications of either of these are covered)

Discover and Learn

1)
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.