Business Overhead

Business Overhead Expense Insurance
Would your business survive if you became disabled? Personal disability won’t cover business expenses in this event, but fortunately obtaining business overhead insurance will cover you if you find yourself in that very situation. It is always best to be prepared to protect yourself, your family and your business for any situation.

Product Description
The business overhead insurance policy is a type of disability insurance. This particular insurance is for protection on the business rather than the earned income. This policy will help ease the financial hardship of business expenses in the event the insured becomes unable to perform their job duties due to a disability or illness. This policy will provide a monthly fund, up to a predetermined amount outlined in the policy to pay monthly business expenses.   
 
What is covered by Business Overhead Expense policy?

• Rent or mortgage payments
• Employee Benefits and Salaries
• Utility Bills
• Office Supplies
• Interest on Business Debts
• Maintenance and Janitorial Services
• Malpractice and Other Business Insurance Premiums
• Accounting Fees, Legal Fees, and Professional Dues
• Property Taxes
• Depreciation
• Other Fixed Expenses that are Ordinary, Necessary, and Tax Deductible

What are the main differences between Business Overhead and personal disability insurance?
There are three main differences between these two types of insurances. The first is the period of the policy. Typically the business overhead expense plans have short policy periods that don’t exceed 2 years.  Another difference has to do with taxation. As long as full cost for personal disability insurance is paid with after-tax dollars, the benefits are tax-free. Business overhead insurance benefits are subject to income tax, however, the premiums are considered tax deductible as a business expense. The last main difference in these policy types has to do with the coverage itself. While personal disability coverage will pay a monthly amount outlined in the policy, the business overhead policy offers a maximum monthly benefit but will only pay the actual overhead expenses.  If they happen to be less than the predetermined amount, the insurance company will compensate accordingly.
***It is important to remember that business overhead policy isn’t to generate income in the event of a disability but to ensure that the business expenses are paid in order to keep the business up and running. 

What can affect the cost of a business overhead expense policy?
There are a number of factors taken into consideration when determining the premium of a business overhead insurance policy. One of the main factors in determining the premium is the insured’s occupation.  If the occupation itself has a higher risk of injury or disability then that will cause the premium of the policy to be more expensive. Age is also taken into consideration when determining the premium, as well as health conditions and family history.  Lastly, criminal offenses such as DUI, theft and others on the insured’s record will have a major impact on the premium and insurability.