When you own a business, you are your own boss. However, it comes with great responsibility, like making sure your business would run smoothly even if you become disabled temporarily. What’s the affordable solution? Business overhead expense (BOE) insurance!
What is BOE Insurance?
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A BOE insurance policy is made to keep your business doors open in case the owner becomes incapacitated temporarily. However, the coverage may vary depending on the policy. BOE insurance can cover rent/mortgage, equipment leasing, employee wages and benefits, automobile loans, and utilities. Some may offer riders that cover commercial loans.
BOE Insurance Coverage
BOE insurance won’t cover the salary of a temporarily disabled owner or co-owners. However, you can get a disability income policy to cover your salary when you become disabled.
BOE insurance coverage is intended for short-term disabilities. Thus, the maximum time covered is usually only two years. Insurers believe that if a business owner hasn’t recovered after two years, then he/she may not be capable of running the business at all. In addition, it usually has elimination period – the waiting time before benefits are given. It typically ranges from 30 to 90 days.
If you run your business without partners and employees and you work at home, then getting BOE insurance doesn’t make sense. But if you have several employees and you’ve rented a space, BOE insurance may just be the difference between the continuity of your business and its permanent closure.
Tips when Getting BOE Insurance
- Determine how much coverage you need for your business. You can do this by calculating your business’s routine monthly expenses.
- Determine the appropriate elimination period and coverage for your business.
- Assess whether adding additional riders and provision will benefit your business.
Owning a business can be risky especially when it comes to your finances. That is why you should protect it with a reliable BOE Insurance.
Professional Insurance Plans is an independent agency that is committed to providing clients with high-quality insurance services at a competitive price. We offer business insurance that can be tailored according to your needs. Get a free quote from us now! Call us at (859) 543-8955