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Business People

Overhead
Expense
Insurance

Protect the business you’ve built

Disability insurance covers routine business expenses

Business Overhead Expense insurance is intended toprovide fnancial protection when your absence from thebusiness due to a disability would result in a signifcantfnancial disruption to the business. The purpose of it is toreimburse the business for reasonable amounts incurred inoperating the business.

Common business expenses that are typically reimbursed:

  • Real estate and property taxes

  • Heat

  • Water

  • Electricity

  • Telephone

  • Laundry, janitorial and maintenance services

  • Salaries and employer-paid benefits to employees who do not have an ownership interest in the business and who are not members of your profession

  • Property, liability, malpractice and other business insurance premiums

  • Professional, trade and association dues Licensing fees, including continuing education costs required to maintain a professional license

  • Legal and accounting fees paid except those that are directly related to the termination or sale of your business

  • Billing and collection fees

  • Rent or lease payments for space which you occupy and use in the continued operation of your business

  • Rent or lease payments for motor vehicles, equipment, fixtures, furniture or other assets used in the continuing operation of your business if you have no direct or indirect ownership in the assets

  • Scheduled installment payments of interest on debt

  • Depreciation or scheduled installment payments of principal on debt for which you were liable before you become disabled.

Some expenses that are not reimbursed:

  • That portion of normal and customary business expenses which would be the obligation of an individual other than yourself

  • Any expense for which you were not normally and customarily liable on a periodic basis prior to your becoming disabled

  • Any other expenses that have been waived, reimbursed or are reimbursable from any other source

  • Any prepayment or advance payment of a covered overhead expense

  • Any salary, fee, draw, advance, beneft or other remuneration for a member of your family Income taxes or self-employment taxes

  • Any expense for equipment, motor vehicles, fixtures, furniture or other assets purchased or leased after the date you became disabled

  • The cost of inventory, merchandise, products, goods and services directly attributable to generating revenue

  • The cost of implements of your profession

  • The cost of supplies, fees and expenses passed onto your clients

  • The costs of gifts, charitable donations, meals and entertainment.

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