Business Overhead Expense Disability Insurance

Business overhead expense (BOE) disability insurance pays the insured’s business overhead expenses if he or she becomes disabled. A BOE policy pays a monthly benefit based on actual expenses. It is designed for businesses that rely on a small number of people or just one person to produce revenue.

The following business overhead expenses are typically covered by a BOE disability policy:

• Accounting fees
• Employees’ salaries and payroll taxes
• Equipment maintenance
• Insurance premiums for Workers’ Compensation, employee medical and liability
• Interest payments on some business debts
• Postage and stationery
• Professional memberships and subscriptions
• Rent
• Rental, lease, or depreciation of office equipment
• Taxes on the business property location
• Utilities

 BOE insurance policies have short benefit periods that do not usually exceed two years.

BOE insurance benefits are subject to income tax, but the premiums are tax deductible as a business expense.

Rates are based on the insured's age at time of purchase, occupation and health status.

If you are interested in this type of business coverage, visit or call us at SASCU Wealth.